Which of the following is NOT a good example of the matching principle?
A)A machine that produces certain goods is depreciated over its useful life.The
Depreciation expense is matched with the proceeds from the sale of those goods.
B)The entire amount of a two-year insurance premium is expensed in the first year.
C)An uncollectible receivable is written off in the year that the sale was made.
D)Recognition of revenue for which associated expenses cannot yet be determined is
Delayed until such determination can be made.

Question

Quizplus · Accepted Answer

The matching principle requires expenses to be recognized in the same period as the revenues they help generate. Expensing a two-year insurance premium entirely in the first year does not match the expense with the periods it benefits.

Which of the Following Is NOT a Good Example of the Matching