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o demonstrate the matching principle in e about 15,000 miles each year. u associated with owning and operating owning and operating the car, as well as e a part-time job. You usually do not u

o demonstrate the matching principle in e about 15,000 miles each year. u associated with owning and operating owning and operating the car, as well as e a part-time job. You usually do not u

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The purpose of this exercise is to demonstrate the matching principle in a familiar setting. Assume that you own a car that you drive about 15,000 miles each year. . L16 EXERCISE 3.2 The Matching 7 Principle: You as a Oriver List the various costs to you associated with owning and operating ias car. Make an estimate of the total annual cost of owning and operating the car, as well as the average cost-per-mile that you drive. a. Assume also that you have a part-time job. You usually do not use your car in this job, but today your employer asks you to drive 100 miles (round-trip) to deliver some important docu- ments. Your employer offers to "reimburse you for your driving expenses." You already have a full tank of gas, so you are able to drive the whole 100 miles without stopping and you don't actually spend any money during the trip. Does this mean that yo have incurred no "expenses" for which you should be reimburscd? Explain. b.
Transcribed Image Text:The purpose of this exercise is to demonstrate the matching principle in a familiar setting. Assume that you own a car that you drive about 15,000 miles each year. . L16 EXERCISE 3.2 The Matching 7 Principle: You as a Oriver List the various costs to you associated with owning and operating ias car. Make an estimate of the total annual cost of owning and operating the car, as well as the average cost-per-mile that you drive. a. Assume also that you have a part-time job. You usually do not use your car in this job, but today your employer asks you to drive 100 miles (round-trip) to deliver some important docu- ments. Your employer offers to "reimburse you for your driving expenses." You already have a full tank of gas, so you are able to drive the whole 100 miles without stopping and you don't actually spend any money during the trip. Does this mean that yo have incurred no "expenses" for which you should be reimburscd? Explain. b.
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