18

Under the accrual basis of accounting, many of the account balance in the ledger at the end of the accounting period are reported in the financial statement without change. Some accounts require updating, though. When preparing financial statements, the economic life of the business is divided into time periods. The matching principle states that A purchase made by a business is matched with the actual cost of the item The accounting records and reports are matched with objective evidence The transactions of a business are matched with the transactions of hs owner, creditors and other 505 The expenses incurred during a period are matched with the reverse that those expenses garsorated, Under accrual basis of accounting, the revenue recognition principle states that Revenues are recognized when the cash in received Revenues are recognized when control signed with the customer, Revenues are recognized when services have been performed or products have been delivered to customers Reveres may not be recognized until the company is deemed to be profitabile Review The following selected in action date of business for April. Keeping the matching aninople in mind, indicale which of the following would be used to compleet income for the month of April. Check all that apply Cashtrecated in April from customers for services performed in May D Expenses incurred in April but not paid until June Services provided to customers on account during April Th11