ofwhencashispaid 3 15 the matching principle

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Unformatted text preview: accounting period accounting period should be recorded in should be recorded in that period, regardless that period, regardless of when cash is paid.. of when cash is paid 3-15 The Matching Principle When cash is paid on the date the expense is incurred, the following entry is made: Expense Incurred AND Cash Paid Expense (+E) xxx Cash (­A) xxx 3-16 The Matching Principle If cash is paid before the company receives goods or services, an asset account, PREPAID EXPENSE is recorded. Cash is paid before expense is incurred ­ $ Paid Prepaid expense (+A) xxx Cash (­A) xxx 3-17 The Matching Principle Wh...
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This note was uploaded on 01/30/2014 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas.

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