Explain the concept of the matching principle. Discuss how depreciation can be justified as an expense under the matching principle?
Matching principle: It is the principle that requires a company to match expenses with related revenues in order to report a company's profitability during a specified time interval. In simple terms, as per matching principle, for every debit there should be equal credit.
Even though the depreciation is a non cash expense, it reduces the income of company. This is because of matching principle. In order to show that the value of an asset has decreased, it is credited and for the same to show its equal debit, depreciation expense is recorded.
Explain the concept of the matching principle. Discuss how depreciation can be justified as an expense...
What is depreciation and how does it relate to the matching principle? Is depreciation an exact calculation? If not, what estimates are involved? What happens in the accounting records if we estimate that a car will last for 5 years and it lasts for 7 years?
Which of the following statements is true concerning the matching principle? a. All costs can be indirectly matched with periods in which they provide a benefit. b. The association of assets for a period with the liabilities necessary to generate the assets is known as the matching principle. c. Cost of goods sold matched with sales revenue is a classic example of direct matching under the matching principle. d. All costs can be directly matched with revenue.
Question - Explain, in your own words, how the matching concept applies to adjusting entries.
Explain the revenue recognition principle and the matching principle. Differentiate between the cash basis and the accrual basis of accounting. Explain why adjusting entries are needed and identify the major types of adjusting entries.
Explain what constitution is used & how the concept or principle might be used by a Supreme Court justice in a modern-day Supreme Court case to adjudicate a current conflict.
Discuss the principle of least protection and the principle of least privilege. Then discuss how systems that implement the principle of least privilege can still have protection failures that lead to security violations.
Explain 1.) How does the Matching Principle relate to the Costs of Goods Sold ? 2.) Manufacturing companies can choose from several methods of valuing its inventory such as normal cost, weighted average and FIFO. This is true financial reporting. However, for taxes purposes, they may also elect the LIFO method. Why/when do you think choosing LIFO would be an advantage on their tax return? 3.) When creating a budget, when would one likely to choose doing quarterly budgets (adjusting...
How does the Matching Principle relate to the Cost of Goods Sold?
Question 1 Explain the following accounting concepts: (10 marks) a. Business entity concept b. Matching concept c. Going concern d. Accruals concept e. Consistency concept
Discuss the BioPsychoSocial model. Explain how important this concept is in pain management. Discuss Conflict resolution.