The Matching Principle States That

question 36

Multiple Choice

The matching principle states that

• A)expenses should be matched with specific jobs.
• B)expenses should be matched with revenues they generate.
• C)revenues should be recorded in the period in which the payment is received.
• D)expenses should be matched to assets which generated the expenses.

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Definitions:

Ruminate

The process of continuously thinking about the same thoughts, which are often sad or dark, without coming to any resolution.

Positive Correlation

A relationship between two variables where they both increase or decrease together.

Depression

A common and serious medical illness that negatively affects how one feels, thinks, and handles daily activities, characterized by persistent feelings of sadness and/or a lack of interest.

Heart Disease

A broad term for a range of diseases affecting the heart and blood vessels, often related to atherosclerosis or buildup of plaques in the walls of arteries.