Question: Match the correct term with its definition. Cost principle a . ( also referred to as the matching principle ) matches expenses with associated revenues
Match the correct term with its definition.
Cost principle
aalso referred to as the matching principle matches expenses with associated revenues in the period in which the revenues were generated
b buniness may only report activities on financial statements that are specifically related to company operations not those activities that effect the owner
c buniseness must report any business activities that could affect what is reported on the financial statements
d system of using a monetary unit by which to value the transaction such as the US dollar
e period of time in which you performed the service or gave the customer the product is the period in which revenue is recognized
f if uncertainty in a potential estimate a company should shoulder err on the side of caution and report the most conservative amount.
h also know as the historical cost principle states that everything the company owns or controls assets must be recorded at their value at the date of
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