Clinton prepares monthly financial statements.Which of the following violates the matching principle?
A)A portion of the salary payments made this month are not recognized as expense because some of the work was done by employees last month.
B)The premium on a six-month insurance policy is charged immediately to expense.
C)Expenses for the period exceed revenues.
D)The cost of advertising done during the month is charged to expense even though no payment is due for 60 days.

Question

Quizplus · Accepted Answer

The Answer of Clinton prepares monthly financial statements.Which of the following violates the matching principle?
A)A portion of the salary payments made this month are not recognized as expense because some of the work was done by employees last month.
B)The premium on a six-month insurance policy is charged immediately to expense.
C)Expenses for the period exceed revenues.
D)The cost of advertising done during the month is charged to expense even though no payment is due for 60 days.

Clinton Prepares Monthly Financial Statements