The matching principle states that expenses should be matched with revenues

The matching principle states that expenses should be

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66.The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that:a.assets should be matched with liabilities.b.efforts should be matched with accomplishments.c.dividends should be matched with stockholder investments.d.cash payments should be matched with cash receipts.Ans: B, SO 1, BT: K, Difficulty: Easy, TOT: 1 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Communication67.Which principle dictates that efforts (expenses) be recorded with accomplishments (reven-ues)?Ans: D, SO 1, BT: K, Difficulty: Easy, TOT: 1 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Reporting, AICPA PC: Problem Solving68.A flower shop makes a large sale for $1,000 on November 30. The customer is sent a statement on December 5 and a check is received on December 10. The flower shop fol-lows GAAP and applies the revenue recognition principle. When is the $1,000 considered to be earned?69.A furniture factory's employees work overtime to finish an order that is sold on January 31. The office sends a statement to the customer in early February and payment is received by mid-February. The overtime wages should be expensed in:4-7
Test Bank for Financial Accounting: Tools for Business Decision Making, Fifth Edition70.Which is not an application of revenue recognition?a.Recording revenue as an adjusting entry on the last day of the accounting period.b.Accepting cash from an established customer for services to be performed over the next three months.c.Billing customers on June 30 for services completed during June.d.Receiving cash for services performed.Ans: B, SO 1, BT: C, Difficulty: Easy, TOT: 1 min., AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Problem Solving71.Why do generally accepted accounting principles require the application of the revenue re-cognition principle?

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