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3 years ago

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, only option C does not align with the matching principle 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 cash basis of accounting is being applied.

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Which of the following is considered a constructive delivery of a gift?

Hoochie [10]

Answer:

A) giving the key to a safe-deposit box where the gift is kept

Explanation:

A Constructive delivery possession is that acquisition when here a symbolic transfer of property. The constructive distribution of the possession is basically a right that the property is not actually managed
But the donor has done something to convey the possession, but the property is of such a nature that physical possession is then not possible, the creative possession of the property is sufficient to carry out the act of gift.

7 0

3 years ago

The actual cost of direct labor per hour is 16.00 and the standard cost of direct labor per hour is 15.50. The direct labor hour

blondinia [14]

Answer: $3,875 Favorable

Explanation: We can compute direct labor efficiency variance by using following formula :-

Direct labor efficiency variance = standard rate ( actual hours - standard hours)

where,

standard hours = 5,500units * 0.5 hour = 2750 hours

actual hours = 3,000 hours

standard rate = $15.5

putting the values into equation we get :-

Direct labor efficiency variance = $15.5 ( 3,000 - 2750)

= $3,875 Favorable

5 0

3 years ago

The issuer of a 5% common stock dividend to common stockholders should transfer from retained earnings to paid-in capital an amo

NISA [10]

Answer: A

Fair value of the shares issued.

5 0

3 years ago

An appraiser has just completed a search of the records for comparable residential properties that have sold within the last six

BigorU [14]

I believe the Appraier is using: Direct Sales Comparison Approach (mostly used with residential properties.
Direct sales comparison approach is an appraisal method that being done by comparing the sales that happen between similar properties/products to determine the value of that properties/productss

8 0

3 years ago

b. If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the s

LiRa [457]

Answer:

$2 billion

Explanation:

Foreigners spend $7 billion on U.S net exports

Americans spend $5 billion on imports

Therefore the value of U.S net exports can be calculated as follows

= $7 billion-$5billion

= $2 billion

Hence the value of U.S net exports is $2 billion

7 0

3 years ago