Which of the Following Statements Regarding the Matching Principle Is

question 29

Multiple Choice

Which of the following statements regarding the matching principle is correct?

• A)The matching principle is never relevant to tax accounting.
• B)The matching principle of financial accounting is an important component of the cash method of accounting.
• C)The matching principle of financial accounting is the cornerstone of accrual basis tax accounting.
• D)The matching principle of financial accounting is sometimes relevant to timing deductions for an accrual basis taxpayer's recurring items.
• E)None of the above.

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Definitions:

Studentized Residuals

Residuals divided by their estimated standard deviation, often used in regression analysis to identify outliers.

Predicted Values

The outcomes forecasted by a statistical model or algorithm.

Regression Equation

A formula that describes the relationship between a dependent variable and one or more independent variables.

Length

The measurement or extent of something from end to end; the greater of two or the greatest of three dimensions of an object.