Which one of the following is violated when a company records cost of goods sold expense at the time when inventory is purchased?
A)Relevance
B)Historical cost
C)Matching
D)Revenue recognition criteria

Question

Quizplus · Accepted Answer

Cost of goods sold should only be recorded when the inventory is sold to match the expenses with the revenue earned. Recording cost of goods sold at the time of inventory purchase violates the matching principle.

Which One of the Following Is Violated When a Company