Which of the following accounting principles is concerned with offsetting revenue with the expenses incurred in producing that revenue?

Select one:

A.

Matching

B.

Realization principle

C.

Materiality

D.

Depreciation

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A statement of retained earnings shows:

Select one:

A.

The changes in the Retained Earnings account occurring during the accounting period.

B.

The changes in the Cash account occurring during the accounting period.

C.

The revenue, expense, and dividends of the period.

D.

The types of assets that have been purchased with the earnings retained during the accounting period.

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The operating cycle:

Select one:

A.

Is longer for a retailer than for a manufacturer.

B.

Is repeated once per year for manufacturers and merchandisers.

C.

Has seven steps.

D.

Starts with using cash to purchase merchandise and ends with collecting the cash back from customers.