Question
Cost or expenses must be recorded at the same time as
the revenue to which they correspond is specified by which principle?Solution
According to the Matching Principle, expenses should be recognized in the same period as the revenues they helped generate, regardless of when the actual cash payment occurs. This principle ensures that the financial statements reflect the true profitability of a business by matching the expenses incurred to generate revenues in the same accounting period.
Why is perseverance important in achieving long-term goals?
What is the cognitive component of attitudes related to?
Which communication channel is characterized by the direct exchange of information between two individuals?
What ethical issue is associated with the improper use of public funds by a public official?
Neutrality is often emphasized in the work of:
What is the primary focus of restorative justice?
What is the key role of values in ethical conduct?
What does the organizing function of management involve?
What role do values play in decision-making?
What is the core of empathy and compassion?
