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:

Instinctive Drift

During operant learning, the tendency for an organism to revert to instinctive behavior.

Instinctive Drift

The tendency of an animal to revert to instinctual behaviors that interfere with learned responses.

Successive Approximations

A method in behaviorism used to shape behavior by rewarding actions that are closer to the desired behavior.

Free Will

The ability to choose between different possible courses of action unimpeded.