The matching Principle Is Best Demonstrated By

question 77

Multiple Choice

The matching principle is best demonstrated by:

• A) Using debits to record decreases in equity and credits to record increases.
• B) The equation Assets = Liabilities + Equity.
• C) Allocating the cost of an asset to expense over the periods during which benefits are derived from ownership of the asset.
• D) Offsetting the cash receipts of the period with the cash payments made during the period.

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Definitions:

Asthenosphere

The upper mantle's region directly beneath the lithosphere, characterized by high viscosity, mechanical weakness, and ductile deformation.

Oceanic Lithosphere

The rigid outer layer of the Earth under the ocean basins, composed of the crust and upper mantle that is specifically associated with oceanic regions.

Ridge Push

A tectonic process driven by gravitational forces that cause the spreading of the seafloor away from oceanic ridges.

Asthenosphere

A region of the Earth's mantle lying below the lithosphere, characterized by relatively low viscosity and mechanical weakness.