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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Carla Vista Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $23,600 on account. 8 Raw materials requisitioned by production: $9,440 Direct materials Indirect materials 1,180 Paid factory utilities, $2,478 and repairs for factory equipment, $9,440. 15 25 Incurred $122,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $14 per hr) $98,000 Indirect Labor (3,000 hrs x $8 per hr) 24,000 $122,000 45 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 28 30 Goods costing $18,020 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,020 were sold for $20,020 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit…

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Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.) Transactions 1. Raw materials were purchased on account. 2. Issued a check to Dixon Machine Shop for repair work on factory equipment. 3. Direct materials were requisitioned for Job 280. 4. Factory labor was paid as incurred. 5. Recognized direct labor and indirect labor used. 6. The production department requisitioned 7. indirect materials for use in the factory. Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour. 8. Goods that were completed were transferred to finished goods inventory. 9. Goods costing $80,000 were sold for $105,000 on account. 10. Paid for raw materials purchased previously on account. Account(s) Debited

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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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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