The Matching Principle Requires That

question 78

Multiple Choice

The matching principle requires that

• A) expenses be recognized in the period when cash payments occurred.
• B) allows considerable latitude in the timing of expense recognition.
• C) expenses be recognized in the same period as when the firm became liable for payment.
• D) all expenses be allocated to some specific source of revenue.

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Definitions:

Health Care Industry

The sector comprising medical services, manufacturing of medical equipment or drugs, insurance, and other goods and services designed to maintain or improve health.

GDP

Gross Domestic Product; the total market value of all the goods and services produced within a country in a specific period.

Health Clubs

Health clubs, also known as gyms or fitness centers, are facilities that provide a range of physical exercise equipment and programs to help individuals maintain or improve their fitness levels.

Medical Laboratories

Facilities where various forms of diagnostic and medical testing are conducted to obtain information about the health of patients.