Reading 32: Understanding the Income Statement - LOS c ～ Q1 generated, services, revenue, period, style

mayanfang1

Q1. When the cost of goods and services used are recognized as an expense in the same period that its generated

revenue is recognized, which of the following principle(s) is/are being described?

A)     The matching and accrual principles.

B)     The accrual and expense recognition principles.

C)     The matching principle for revenue and expense recognition.

mayanfang1

答案和详解如下：

Q1. When the cost of goods and services used are recognized as an expense in the same period that its generated

revenue is recognized, which of the following principle(s) is/are being described?

A)     The matching and accrual principles.

B)     The accrual and expense recognition principles.

C)     The matching principle for revenue and expense recognition.

Correct answer is C)

The accrual concept states that revenue is recognized when the earnings process is completed and cash receipt is assured.

mcdullpong

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goofey

THANKS

Michjay

a

Laura17

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suodi

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bartzzr

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elvapeng

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chenchen_022

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