Asked by Angie Rivera on May 12, 2024
Verified
The matching principle says:
A) assets costs should be recorded in the period in which they are purchased.
B) recognition of an asset's cost should match its service life.
C) the customer should be invoiced as soon as merchandise is produced.
D) only cash transactions should be recorded in the accounting records.
Matching Principle
An accounting principle that dictates that expenses should be recorded in the same period as the revenues they helped to generate.
Asset's Cost
Represents the total amount incurred to acquire an asset and make it operational, including purchase price and all other expenses necessary to get the asset into a usable state.
Service Life
The estimated period that an asset is expected to be useful in the operations of a business.
- Acquire knowledge on the fundamentals and practical aspects of depreciation, its recording in financial statements, and influence on income and liquidity.
Verified Answer
Learning Objectives
- Acquire knowledge on the fundamentals and practical aspects of depreciation, its recording in financial statements, and influence on income and liquidity.
Related questions
When an Account Is Determined to Be Uncollectible, Writing Off ...
Holding All Other Variables Constant, an Increase in Net Income ...
Which of the Following Appears on the Income Statement ...
If Their Bonuses Are Based on Net Income, Managers May ...
Depreciation, from an Accounting Viewpoint, Can Best Be Thought of ...