course name (Islamic accounting)

1-Which accounting principle requires expenses to be matched against the revenues which they help to generate?

Historical cost principle Accounting entity principle Expense recognition principle Matching principle

2-Before adjustment, what type of account will result in assets being overstated and the expenses understated?

Unearned revenues Accrued revenues Prepaid expenses Accrued expenses

3-Which of the following statement about accrual accounting is not correct?

Expenses are recorded only when cash is paid and cash from revenues received. Expenses are recorded when incurred irrespective of whether cash is paid. Revenues are recorded when earned irrespective of whether cash is received. Recording of the economic events affecting the financial statements of the company is done in the period during which these events occur.