Revenues measure the accomplishments of a company during the period. Expenses are then matched with revenues to produce a periodic measure of performance called net income.

Required:
1. Explain what is meant by the phrase matched with revenues.
2. Describe the four approaches used to implement the matching principle and label them 1 through 4.
3. For each of the following, identify which matching approach should be used to recognize the cost as expense.
a. The cost of producing a product.
b. The cost of advertising.
c. The cost of monthly rent on the office building.
d. The salary of an office employee.
e. Depreciation on an office building.