The Matching Principle Calls for the Accountant of a Company

question 71

Multiple Choice

The matching principle calls for the accountant of a company to:

• A) identify an asset with each liability of the company.
• B) associate the revenue generated from a sale to the costs incurred to produce the product.
• C) match each item of inventory with the historical cost at which it was acquired.
• D) none of the above

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Definitions:

Legal-Political Conditions

The legal and governmental framework within which individuals, organizations, and businesses operate, including laws, regulations, and political climate.

Patent Attorney

A legal professional specialized in intellectual property law, specifically in securing and protecting patent rights for inventions and designs.

Environmental Uncertainty

The degree of unpredictability and complexity in an organization's external environment, affecting decision-making and strategic planning.

Complexity

The state or quality of having multiple interrelated parts, leading to difficulty in understanding, analysis, or resolution.