The Matching Principle

question 4

Multiple Choice

The matching principle:

• A)Applies only to situations in which a cash payment occurs before an expense is recognized.
• B)Applies only to situations in which a cash receipt occurs before revenue is recognized.
• C)Is used in accrual accounting to determine the proper period in which to recognize revenue.
• D)Is used in accrual accounting to determine the proper period for recognition of expenses.

---

Definitions:

Rough Terrain

Uneven, rocky, or irregular ground that requires specialized equipment or vehicles to navigate effectively.

Spec'ing

The act of specifying or determining the precise technical requirements or specifications for equipment, processes, or systems.

Cost Factors

Elements that influence the total expenses incurred in the production, operation, or maintenance of a system, product, or service.

Operating A Truck

The process of controlling and managing a truck, including driving, loading, and maintenance.