The recognition of which of the following expenses exemplifies the application of matching expenses with the revenues they produced?
A) President's salary.
B) Research and development.
C) Cost of goods sold.
D) Advertising.

Question

Quizplus · Accepted Answer

Cost of goods sold is an expense directly related to the production of goods that are sold during a particular period. Matching this expense with the corresponding revenue from the sale of those goods is an example of the matching principle. The other options, such as the President's salary, research and development, and advertising, do not have a direct relationship with revenue generation, and their timing of recognition may vary depending on the accounting policies of the organization.

The Recognition of Which of the Following Expenses Exemplifies the Application