Which of the Following Represents a Use of the Matching

question 16

Multiple Choice

Which of the following represents a use of the matching principle in accounting?

• A) The cost of purchasing an item on account is recorded when the payable is paid.
• B) Revenues from a credit sale are recorded when the receivable is received.
• C) The production costs of inventory are recorded along with the revenue from the sale on the date the sale is made.
• D) Costs are recorded as fixed or variable on the date of the transaction.
• E) Revenues are recorded when cash is received, and costs recorded when payments are made.

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Definitions:

Engineering Drawing

A technical drawing or plan, used by engineers to accurately represent structures, systems, or parts, which is essential for manufacturing and construction processes.

Tolerances

The permissible limits of variation in a physical dimension, material condition, or other measurable characteristic.

Materials

Substances or components that are used in the manufacturing process to create products.

Route Sheet

A document detailing the operations, materials, and sequence of work required to manufacture a part or assembly, guiding the production process.