Paige Turner Publishing paid cash in advance for a one year insurance policy. According to the matching principle, Paige Turner Publishing should recognize the policy as insurance expense

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The matching principle states that expenses should be recognized in the same period as the related revenues. In this case, the insurance policy expense is related to the one year policy period, so it should be recognized in equal installments over that period as it is incurred. This ensures that the expense is matched with the period in which it provides benefits to the company.

Paige Turner Publishing Paid Cash in Advance for a One