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Chapter 3: Q2TI-3 (page 123)

Match the accounting terminology to the definitions. 3. Time period concept 4. Revenue recognition principle 5. Matching principle a. Requires companies to record revenue when it satisfies each performance obligation. b. Assumes that a business’s activities can be sliced into small time segments and that financial statements can be prepared for specific periods. c. Guides accounting for expenses, ensures that all expenses are recorded when they are incurred during the period, and matches those expenses against the revenues of the period

Short Answer

Expert verified

The correct option is “c”.

Step by step solution

01

Explanation on Accounting Principle

Accounting principles refers to the general rules and assumptions that are applicable to the business entity for accounting purposes.

02

Explanation on Matching Principl

Matching principle is also known as expense recognition principle. Matching principle helps in accounting of epenses. As per the matching principle, expenses should be recorded when it is incurred, and should match with the revenues earned.

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