Question
Which of the following situations violates the matching principle? A ) Some of the amount that was paid for a one-year insurance policy partway through
Which of the following situations violates the matching principle?
A ) Some of the amount that was paid for a one-year insurance policy partway through Year 1 is recorded as insurance expense in Year 2.
B ) A one-year insurance policy is purchased partway through the year; full payment is recorded as insurance expense when the payment is made.
C ) Wages expense is recorded in Year 1 even though payday is not until sometime in Year 2.
D ) Sales commissions on all sales made in Year 1 are recorded as an expense in Year 1 even though some of the commissions have not yet been paid
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