Which of the following accounting principles requiresbusinesses to record depreciation?a. the cost principleb. the matching principlec. the revenue recognition principled. the going concern principle

The correct answer is:b. the matching principle Explanation:The matching principle is an accounting…

Answered: Which of the following accounting…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 17CYBK

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Describe the revenue recognition principle. Give specifics.
Explain when revenue may be recognized and give an example.
How does the revenue-expense approach differ from the asset-liability approach fordefining accounting elements?
The concept that states assets should be recorded at their original cost is known as the: a) Matching Principle b) Cost Principle c) Consistency Principle d) Revenue Recognition Principle
Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.
Refer to Exhibit 9.1. Which accounts are relevant in the revenue cycle? Identify the relationships among them.
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Also known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Part a. The two basic requirements for the accrual of a loss contingency are supported by several basic concepts of accounting.Three of these concepts are the period of time assumption the recognition principle and the qualitative characteristic of verifiability. Required: Discuss how the two basic requirements for the accrual of a loss contingency relate to the tree concepts mentioned above. Part b. The following three independent sets of facts relate to (1) the possible accrual or (2) the possible disclosure by other means of a loss contingency Situation I A company offers a 1 year assurance type warranty for the product that it manufactures. A history of warranty claims has been compiled and the probable amount of claims related to slaes for a given period can be determined. Situation II Subsequent to the date of a set financial staements, but prior to the issuance of the financial statements, a company enters into a contract that will probably result in a significant loss to the…
In accounting, which principle emphasizes recording transactions at their original cost? A) Matching principle. B) Revenue recognition principle. C) Historical cost principle. D) Conservatism principle.
When is revenue recognized in the following situations?(a) Revenue from selling products, (b) revenue from servicesperformed, (c) revenue from permitting others to usecompany assets, and (d) revenue from disposing of assetsother than products.
What is the two criteria be satisfied before revenue can be recognized?

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Which of the following accounting principles requires businesses to record depreciation? a. the cost principle b. the matching principle c. the revenue recognition principle d. the going concern principle