The Matching Principle

question 4

Multiple Choice

The matching principle:

• A)Applies only to situations in which a cash payment occurs before an expense is recognized.
• B)Applies only to situations in which a cash receipt occurs before revenue is recognized.
• C)Is used in accrual accounting to determine the proper period in which to recognize revenue.
• D)Is used in accrual accounting to determine the proper period for recognition of expenses.

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Definitions:

Independent Existence

The state of being self-sufficient and not reliant on other entities or factors for survival or function.

Positive Effects

Positive effects refer to beneficial impacts or outcomes that improve conditions or provide advantages in a given context.

Direct Effects

Immediate consequences or outcomes of an action, without intermediaries or secondary processes.

Realized Niche

The actual conditions and resources in which a species exists as a result of competition in its ecosystem.