Which of the following statements describes the proper matching of revenue and expenses?

Multiple Choice

• Insurance premiums cover specific periods and are charged to expense when they are paid.

• The cost of a building is recorded as an asset. Depreciation expense is recognized over the periods in which the asset is expected to help earn revenues for the business.

• General office salaries are recorded as assets when they are incurred because they benefit future periods.

• Manufacturing costs are identified with specific products and are charged to cost of goods sold when the manufacturing process is complete.