Sally Smith Had Expenses of $800 in June Which She

question 146

Multiple Choice

Sally Smith had expenses of $800 in June which she paid in July. She declared these expenses on her June income statement. By doing this, she is following the accounting principle of:

• A) Revenue realization.
• B) Adequate disclosure.
• C) Matching.
• D) Conservatism.

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Definitions:

Given Information

Any data, facts, instructions, or starting points provided as the basis for understanding or making decisions.

P(A / B)

A conditional probability representing the likelihood of event A occurring given that B has occurred.

Complement

The subset of outcomes in the universal set that are not in the specified event, often used in probability.

Mutually Exclusive

Events that cannot occur at the same time, implying no overlap between outcomes.