question archive The recognition of which of the following expenses exemplifies the application of the matching principle? Select one: A
The recognition of which of the following expenses exemplifies the application of the matching principle? Select one: A
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The recognition of which of the following expenses exemplifies the application of the matching principle? Select one:
A. Research and development.
B. President's salary.
C . Advertising.
D. Cost of goods sold. on and during 2019
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Answer:
The matching principle states that expense should be recorded in the period in which it is incurred i.e., period to which the respective revenue relates.
If an expense is not directly related to revenues, the expense should be reported on the income statement in the accounting period in which it incurred.
The most specific option is "Cost of goods sold" as per the explaination given above.
