2.) Prepaid expenses expire with the passage of time or through use and consumption, e.g., insurance, supplies

True

False

3.)Which of the following accounting principles would require that all goods and services purchased be recorded at cost?

a. Business entity principle.

b. Going concern principle.

3.) The expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:

a. The cash basis of accounting.

b. The matching principle.

c. Allowance for depreciation.

d. Depreciation.

e. Accumulated depreciation.

4.) The accounting principle that requires revenue to be reported when earned is the:

a. Matching principle.

b. Timeliness principle.

c. Cost principle.

d. Going concern principle.

e. Revenue recognition principle.