Question: Why is the matching principle important?

Why is the matching principle important?

Step by Step Solution

★★★★★

3.32 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Matching nets expenses against the revenues they genera... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

99-B-A-F-S (1917).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Explain the matching principle. How is the matching principle related to the realization concept?

Q:

Why is the shelter principle an important legal concept as it relates to negotiable instruments?

Q:

the matching principle determines a where in the profits and loss account revenues should be presented b where in the income statement expenses should be presented c how costs are allocated between...

Q:

1. Answer each of the questions below. Why is the matching principle important in the adjusting process of the accounting cycle? Two of the five types of adjusting entries presented in chapter 3 0...

Q:

Why is the matching principle important to financial reporting? Can cash accounting follow the matching principle? 250 word explanation please. 0 0

Q:

during any manage earnings. (30 Points) Why is the matching principle important in accounting? Give some examples of sound matching prescribed by IFRS and examples of poor matching by IFRS and (20...

Q:

examples (sound & poor) according to IFRS B) Why is the matching principle important in accounting? Give some examples of sound matching prescribed by IFRS and examples of poor matching by IFRS and...

Q:

QUESTION 2 Brosnan, a sole trader, has total receivables of 42,560 on the 31" May 2020 and 1,616 as the balance on the provision for bad debts before adjustments for the year ended 31" May 2020. An...

Q:

C2.J. Changes in shareholders' equity are determined by total earnings minus net payout to shareholders, but the change in shareholders' equity is not equal to net income (in the income statement)...

Q:

(a) Explain how each of the following posting errors affects a trial balance. State whether the trial balance will be out of balance because of the posting error, and indicate which side (debit or...

Q:

Calculating the WACC In the previous problem, suppose the companys stock has a beta of 1.2. The risk-free rate is 3.1 percent, and the market risk premium is 7 percent. Assume that the overall cost...

Q:

In problem, find fʹ (x) and simplify. 3x+5 f(x)--2-3

Q:

Peggy McIntosh discusses a bunch of unearned assets and privileges she has based on parts of her identity, she calls this her: Master s tools Access to Male privilege Her get out of jail free card...

Q:

Mean and median. What is the mean of the density curve pictured in Figure 3.4? (That is, where would the curve balance?) What is the median? (That is, where is the point with area 0.5 on either...

Q:

Fred argues, The standards that I like most are the ones that eliminate all management discretion in reportingthat way I get uniform numbers across all companies and dont have to worry about doing...

Q:

Bill Simon says, We should get rid of the FASB and SEC since free market forces will make sure that companies report reliable information. Do you agree? Why or why not?

Q:

Many firms recognize revenues at the point of shipment. This provides an incentive to accelerate revenues by shipping goods at the end of the quarter. Consider two companies, one of which ships its...

Q:

The na ve Bayes algorithm works well unless

Q:

4. For a Uniform [0, 1] distribution, recall that the order statistics, X(1) = min{X1, X2} and X(2) = max {X1, X2}, have densities f(x) = 2 -2x for the min and f(x) = 2x for the max (both supported...

Q:

Which business function is displayed with the transaction code VA 0 3 ?