akekssignment takeCengage CengageNOWv2o e Whats Hot WildTang

akekssignment takeCengage CengageNOWv2/o e What\'s Hot WildTangent Games.. Cakculator By matching revenue earne Oa. net income or loss will not be determined b. net income or loss will be properly reported on the income statement d during the accounting period to related incurred expenses, c. net income or loss will always be underestimated d. net income or loss will always be overestimated

Solution

Ans is b. net income or loss will be properly reported on the income statement.

Explanation: As per the matching principle of accounting revenue and expenses belonging to the specified period of reporting must be included in income statement, it is necessary for correct estimation of income or profit generated in that period, suppose $100 revenue is earned in month of july and expenses incurred for that revenue generation is $20 (whether paid in that period or not, doesn’t matter) should be reported in same period so that it can be correctly estimated that we have net profit of $80 in July, if we don’t report matching expenses, then picture can be misleading.