How is the performance for period recorded according to GAAP business?
A)As a "fair" presentation of results for the period.
B)As a capitalized as asset on balance sheet,not as an expense on income statement.
C)As a proper matching of revenues and costs for the period in an income statement.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

GAAP requires that a proper matching of revenues and costs for the period is recorded in an income statement. This means that the performance for the period should be reflected accurately in the income statement by recording all revenues earned and expenses incurred during that period. Option A is not specific enough to capture the accounting requirements for recording performance, and option B is not generally applicable as most expenses are recorded as expenses on the income statement rather than capitalized as assets. Option D is not correct as option B is not accurate and option A is too vague.

How Is the Performance for Period Recorded According to GAAP