The Matching Principle Includes Two Steps

question 74

Multiple Choice

The matching principle includes two steps:

• A)measure the expenses and record the revenue.
• B)identify all the expenses incurred during the accounting period and measure the expenses and match them against the revenue earned.
• C)when to record revenue and the amount of revenue to record,
• D)when to record the revenue and identify all the expenses incurred during the accounting period.

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Definitions:

Construction Lien

A legal claim against a property by a contractor or subcontractor for unpaid work or materials.

Building Contract

A legal agreement detailing the terms under which construction work is to be carried out, including obligations, timelines, and payment details.

Lumber Supply Company

A business entity that specializes in sourcing, distributing, and possibly manufacturing wood and wood products for various uses.

Contractual Relationship

A legal connection between parties established by an agreement defining their rights and obligations.