Expenses Should Be Matched Against Revenue

question 11

Multiple Choice

Expenses should be matched against revenue

• A)before the earnings process is complete.
• B)only after cash is collected from the customer.
• C)in the same period as the revenue that they helped generate.
• D)after payment has been made for any costs related to the revenue.

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Definitions:

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporation

A legal entity separate from its owners, with its own rights and liabilities, capable of conducting business.

Legal Entity

An organization that has legal rights and obligations, including the ability to enter into contracts and own assets, separately from its owners.

Public Corporation

A type of company that issues shares of stock that are publicly traded on one or more stock exchanges.