The ________ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period
A) principle of prudence
B) deferral principle
C) materiality principle
D) matching principle
E) principle of continuity
Answer: D
Explanation: The matching principle is the fundamental principle requiring that expenses incurred in producing revenue be deducted from the revenues they generate during an accounting period.
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A ________ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO
A) shareholder proposal B) leveraged buyout C) shareholder action D) hostile takeover
In which systems analysis step do analysts conduct an extensive study of the present system to gain a thorough understanding of how it works?
A) Feasibility study. B) Information needs and requirements. C) Systems analysis report. D) Systems survey.