The Basic Purpose of the Matching Principle Is to Allocate

question 105

Multiple Choice

The basic purpose of the matching principle is to allocate the cost of an asset to expense over the years in which the asset contributes to revenue.Current accounting practice does not strictly apply this principle to expenditures for:

• A)Natural resources.
• B)Research and development.
• C)Trademarks.
• D)Equipment.

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Definitions:

Tragedy of the Commons

A situation in economic theory where individual users consuming shared resources act according to their own self-interest contrary to the common good of all users, leading to resource depletion.

Agricultural Sustenance

Practices and methods of farming that support the long-term productivity and health of the land, aiming for food security and environmental sustainability.

Pollution Prevention

Strategies and practices aimed at reducing or eliminating the production of pollutants at their source, rather than managing them after they have been created.

Pollution Cleanup

The process of removing contaminants from the environment, including soil, water, and air, to reduce pollution and restore ecosystems to their natural state.