Which of the Following Situations Violates the Matching Principle During

question 122

Multiple Choice

Which of the following situations violates the matching principle during 2013 for a real estate company that pays its agents on commission?

• A)Sales commissions are charged to expense in 2013 on all sales made in 2013 even though some of the commissions have not been paid.
• B)Insurance expense is recognized for the total cost of a 1-year policy purchased in July 2013.
• C)Wages expense is recognized in 2013 even though payday is not until sometime in 2014.
• D)Sales commissions paid in 2013 for 2014 commissions are recorded as prepaid expenses for 2013.

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Definitions:

Optical Storage

A method of storing data on a disc using optical technology, such as CDs, DVDs, and Blu-ray discs.

Hard Drives

Data storage devices used in computers and other devices, employing magnetic storage to save and retrieve digital information.

Output Technologies

Technologies concerned with the presentation of data, including monitors, printers, and audio systems, designed to communicate information to the user.

Microprocessor

A computer processor contained on a single integrated circuit, performing the functions of a CPU in a computer system.