The Matching Principle States That

question 224

Multiple Choice

The matching principle states that

• A) expenses will be matched with revenues to determine net income for an accounting period.
• B) the costs of goods sold must match the total expenses of the firm.
• C) the firm needs to match the assets and liabilities in order to record the transaction in its journal.
• D) revenue recognition occurs before the earnings cycle is completed.
• E) the total receipts must match the expenditures for a given period of time.

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Definitions:

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The process by which a bank or credit card company provides a consumer with a credit card, enabling them to borrow funds for purchases or cash advances.

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Optimal Choice refers to the best possible decision or selection based on given criteria, constraints, and available options to maximize desired outcomes or benefits.

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A higher level of education beyond high school, often resulting in a degree, diploma, or certification, aimed at enhancing knowledge and skills.

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A measure of the highest degree or level of education an individual has completed.