The Matching Principle States That Expenses Should Be Matched with Revenues

question 77

Multiple Choice

The matching principle states that expenses should be matched with revenues because

• A) efforts should be matched with accomplishments.
• B) dividends should be matched with shareholder investments.
• C) cash payments should be matched with cash receipts.
• D) assets should be matched with liabilities.

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Definitions:

Rehearsal

The cognitive process of repeatedly practicing material to enhance memory retention.

Long-Term Memory

The phase of the memory process responsible for the storage of information over an extended period, potentially a lifetime.

Masking

A method in perceptual research where a visual stimulus is made less visible to the observer by the presence of another stimulus, hindering the ability to perceive or process the first stimulus.

Memory Recall

The process of retrieving information stored in long-term memory, bringing it into conscious awareness.