In March 2010, a company salesperson sold some inventory and would receive a commission on those sales in April. The commission should be recognized as
A) an expense in April under the accrual principle.
B) an expense in April under the matching principle.
C) an expense in March under the matching principle.
D) an asset until April under the going concern principle.
E) a dividend in March under the entity principle.

Question

Quizplus · Accepted Answer

The commission should be recognized as an expense in March under the matching principle because expenses should be recognized in the period in which the related revenues are earned, aligning the cost of the salesperson's commission with the period in which the sales were made.

In March 2010, a Company Salesperson Sold Some Inventory and Would