7 The practice of matching Select one: a.requires arbitrary allocation of an asset’s contribution to a revenue stream. b.is required by GAAP to approximate an asset’s contribution to an entity’s periodic cash flow. c.dictates that efforts (expenditures) be matched with associated cash flow. d.illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves.
7 The practice of matching Select one: a.requires arbitrary allocation of an asset’s contribution to a revenue stream. b.is required by GAAP to approximate an asset’s contribution to an entity’s periodic cash flow. c.dictates that efforts (expenditures) be matched with associated cash flow. d.illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 9GI: Give an example and explanation for each of the following differences between when revenues are...
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Question
7
The practice of matching
Select one:
a.
requires arbitrary allocation of an asset’s contribution to a revenue stream.
requires arbitrary allocation of an asset’s contribution to a revenue stream.
b.
is required by GAAP to approximate an asset’s contribution to an entity’s periodic cash flow.
is required by GAAP to approximate an asset’s contribution to an entity’s periodic cash flow.
c.
dictates that efforts (expenditures) be matched with associated cash flow.
dictates that efforts (expenditures) be matched with associated cash flow.
d.
illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves.
illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves.
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