According to Generally Accepted Accounting Principles (GAAP),the cost of goods sold expenses are:
A)recorded as incurred.
B)recorded when paid.
C)matched with revenues.
D)matched with production levels.
E)expensed as management desires.

Question

Quizplus · Accepted Answer

According to GAAP, the cost of goods sold expenses should be matched with revenues. This means that the expenses incurred to produce the goods should be recognized in the same accounting period in which the goods are sold, and the revenues from the sale of those goods are recognized. This ensures that the income statement accurately reflects the profitability of the company for that period.

According to Generally Accepted Accounting Principles (GAAP),the Cost of Goods