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Maru [420]
3 years ago
15

The following does not describe the matching principle

Business
1 answer:
Marizza181 [45]3 years ago
8 0

Answer: The correct answer is c. Expenses are reported on the income statement when cash is paid.

Explanation: Matching principle states that expenses are matched with the related revenue in the same period, that is, expenses incurred to generate related revenue are recorded during the same time interval the related revenue is recorded in order to show the true and fair position of the profitability of the company.

Based on the above definition, <u>only option C does not align with the matching principle</u><u> </u>because expenses should be recorded in the income statement when incurred and NOT when cash is paid. If it is recorded when cash is paid, it means <em>cash basis of accounting</em> is being applied.

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Which one of these statements is correct? Long-term debt is the residual difference between assets and liabilities. Net income t
sergey [27]

Answer:

Long term debt requires a payout of cash within a stated time period.

Explanation:

When entering into a long term debt, there are terms and conditions like interest to be charged and payment terms so obviously there is an expected cash payout to repay the debt at a stated time period.

3 0
3 years ago
Read 2 more answers
Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $300,000 for extrac
melomori [17]

Answer:

The cost of depletion in the current year is $90,000

Explanation:

Santa Fe's current year cost of depletion=cost of rights*Turquoise extracted in the current year/total estimated turquoise to be extracted

cost of rights is $300,000

turquoise extracted in the current year is 1,500 pounds

total estimated turquoise to be extracted over a five-year period is 5000 pounds

cost of depletion in the current year=$300,000*1500/5000

                                                           =$ 90,000.00  

By extension profit for the year assuming no other costs were incurred is :

$200,000-$90,000=$110,000

4 0
2 years ago
Is my answer correct
xeze [42]
Yes you have the answer right.

i know this because my friend just got sponsored for a basketball career and he used his basketball coach as a personal reference.

Hope this helps :)
Please give brainliest!
7 0
3 years ago
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Cisco Systems, a computer networking firm, has undertaken over 80 acquisitions in the last decade. It uses these acquisitions to
sukhopar [10]

Answer:

The correct answer is letter "D": valuable resources.

Explanation:

Acquisitions are purchases of companies by other entities by buying the target entity's stock. When the acquiring company purchases more than 50% of the stocks, it has full decisions over the target firm. Acquisitions happen when one institution wants to break market entry barriers, to decrease competition or to gain new technology. Therefore, <em>the acquiring company obtains a valuable resource from the target firm.</em>

7 0
3 years ago
Amelia has her money in a CD earning 2 percent interest. How long will it take for her money to double?
dusya [7]
It will take her 50 months if the interest grows every months. Here's the reason why:
=> in order to double up your money you need to have a 100% interest and since Amelia only have 2% interest, she needs 50 months to get the an interests that will double up her money.
6 0
2 years ago
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