Question

The matching principle:
a. Is used in accrual accounting to determine the proper period for recognition of expenses
b. Is used in accrual accounting to determine the proper period in which to recognize revenue
C. Applies only to situations in which a cash receipt occurs before revenue is recognized
d. Applies only to situations in which a cash payment occurs before an expense is recognized​

Answer 1

Answer:

नमस्ते तुले का समस्ते फठफफफफफफफफफफफफफफ

Answer 2

The correct answer is OPTION A: The matching principle is used in accrual accounting to determine the proper period for the recognition of expenses.

• The matching principle states that expenses must be recognized when obligations are

1. Incurred, which typically occurs when objects are transferred, such as when they are sold or provided, and
2. Revenues are recognised based on cause and effect.

• If there is no cause-and-effect relationship, such as when costs are used up or consumed, rotten, dated, related to the generation of harmful items, or the services are not in demand, costs are recognized as expenses in the accounting period in which they expired.
• Administrative expenses, research and development, and prepaid service contracts are examples of costs that are expensed immediately or across multiple accounting periods.