Two accounting principles that are relied on in the adjusting process are:
A) Revenue recognition and monetary unit.
B) Revenue recognition and going-concern.
C) Matching and cost.
D) Matching and business entity.
E) Revenue recognition and matching.

Question

Quizplus · Accepted Answer

The two accounting principles that are relied on in the adjusting process are revenue recognition and matching. Revenue recognition refers to the recognition of revenue when it is earned, not necessarily when cash is received. Matching refers to the matching of expenses with the revenues they helped to generate, in order to determine the true profitability of a business. These two principles are essential in ensuring that the financial statements accurately reflect the financial position of the company.

Two Accounting Principles That Are Relied on in the Adjusting