What is the matching principle? The timing of expenses must be matched with the revenues generated The assets must match the liabilities + equity O The operating income must match EBIT The revenues generated must match expenses O All of the above O None of the above You purchase a high-end sewing machine for your business for $1500 and you pay CASH for it. Where do you record the expense for this PP&E item? You would create a line on the income statement called "PP&E expense" and record the entire amount of the purchase since you paid cash for it You record $1500 under Misc. expenses since there really isn't a place for "sewing machine expense" on the income statement You would not record the $1500 expense right away. Instead, you would show depreciation expense over the time the machine is used up producing your products O None of the above You are starting a high-end chocolate business. You purchase an enrober for $2000 to manufacture the chocolates. You expect the enrober to have a useful life of 10 weeks. What is your accumulated depreciation after 5 weeks? O $200 O $500 $1000 O $1500