Which of the Following Is NOT a Good Example of the Matching

question 62

Multiple Choice

Which of the following is NOT a good example of the matching principle?

• A) A machine that produces certain goods is depreciated over its useful life. The depreciation expense is matched with the proceeds from the sale of those goods.
• B) The entire amount of a two-year insurance premium is expensed in the first year.
• C) An uncollectible receivable is written off in the year that the sale was made.
• D) Recognition of revenue for which associated expenses cannot yet be determined is delayed until such determination can be made.

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Definitions:

Promotion

In a business context, promotion refers to activities designed to increase consumer awareness, interest, and purchase of a product or service, often through advertising and marketing strategies.

Corrupt

Engaged in dishonest, unethical, or fraudulent activities, often involving bribery or manipulation, to gain personal or organizational advantage.

Production Manager

An individual responsible for overseeing the production process in a manufacturing plant or company, ensuring efficient operations and meeting production targets.

Company's Union

An organization formed within a company by its employees to negotiate with the management over labor rights and working conditions.