Accountıng I Deneme Sınavı Sorusu #1313791
Which of the following is true according to the “matching principle” ?
Periodic inventory system is used by the companies with inexpensive inventories and manual accounting systems. |
Companies may prepare either single-step or multiple-step income statement. |
Gross profit evaluates the company’s profitability in terms of selling activities. |
Expenses should be recorded in the period in which they generate revenues |
Accounting for purchases and sales differs between the periodic and perpetual inventory systems. |
Yanıt Açıklaması:
Although its name is Cost of Goods Sold, it is an expense item recorded under sales account in income statement. Because according to the “matching principle” expenses should be recorded in the period in which they generate revenues.
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