There are some liabilities,such as income tax payable,for which the amounts must be estimated.Failure to estimate these amounts and record them would be a violation of the
A)matching principle.
B)convention of conservation.
C)practice of consistency.
D)concept of historical cost.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenue they help to generate. Estimating and recording income tax payable is necessary to ensure that expenses are recognized in the proper period, thereby adhering to the matching principle. Failure to estimate and record these amounts would be a violation of this principle. The convention of conservation relates to being cautious when recording uncertain events, while the practice of consistency involves using the same accounting methods year after year. The concept of historical cost refers to the original cost of an asset. None of these concepts are directly related to the estimation and recording of income tax payable.

There Are Some Liabilities,such as Income Tax Payable,for Which the Amounts