Matching Principle in April,Grinnel Paving,Inc.acquired a Large Quantity of Crushed Stone on Stone

question 107

Essay

Matching principle
In April,Grinnel Paving,Inc.acquired a large quantity of crushed stone on account with payment due in 90 days.The stone was used in May when Grinnel Paving,Inc.completed a large parking lot for a local shopping center.In early July,Grinnel Paving,Inc.paid the supplier from which the crushed stone had been purchased.In which month should Grinnel Paving,Inc.recognize the cost of the crushed stone as an expense? What accounting principle provides the justification for the answer?

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Definitions:

Policies And Procedures

Established guidelines and systematic steps created by an organization to govern actions and decision-making, ensuring consistency and compliance with standards.

Rituals

Established patterns of behavior or ceremonies that are performed by an organization or its members, often symbolic in nature.

Observable Culture

Aspects of an organization's culture that can be seen or felt, such as rituals, ceremonies, dress codes, and physical layout, offering insights into the organization's values.

Marketing Director

A professional responsible for overseeing and guiding a company's marketing strategy, campaigns, and team.