The matching principle in accounting requires the matching of debits and credits.

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1TF

The matching principle in accounting requires the matching of debits and credits.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

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KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

Accounting Question

REQUIRED Study the information given below and answer the following questions. Where discount factors are required use only the four decimals present value tables that appear after the formula sheet or in the module guide. Ignore taxes. 5.1 Calculate the Accounting Rate of Return on average investment of the second alternative (expressed to two decimal places). 5.2 Determine which of the two investment opportunities the company should choose by calculating the Net Present Value of each alternative. Your answer must include the calculation of the present values and NPV. 5.3 Calculate the Internal Rate of Return of the first alterative (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION The management of Bentall Incorporated is considering two investment opportunities: (5 marks) (9 marks) (6 marks) The first alternative involves the purchase of a new machine for R900 000 which…

Answer 2

Textbook Question

Chapter 5, Problem 1TF

The matching principle in accounting requires the matching of debits and credits.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 5, Problem 1TF

The matching principle in accounting requires the matching of debits and credits.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 5, Problem 1TF

The matching principle in accounting requires the matching of debits and credits.

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

Answer 8

Expert Solution & Answer

To determine

Identify whether the given statement is true or false.

Answer to Problem 1TF

False statement.

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify whether the given statement is true or false.

Answer 12

Answer to Problem 1TF

False statement.

Answer 13

Explanation of Solution

Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.

The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.

Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.

Answer 14

Ch. 5 - The matching principle in accounting requires the...Ch. 5 - Prob. 2TF Ch. 5 - LO1 As part of the adjustment of supplies, an...Ch. 5 - LO1 Depreciable cost is the difference between the...Ch. 5 - LO1 The purpose of depreciation is to record the...Ch. 5 - LO1 The purpose of depreciation is to (a) spread...Ch. 5 - Prob. 2MC Ch. 5 - Prob. 3MC Ch. 5 - Prob. 4MC Ch. 5 - The first step in preparing a work sheet is to (a)...

The matching principle in accounting requires the matching of debits and credits.

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Answer to Problem 1TF

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