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Which of the Following Situations Violates the Matching Principle During

Question 151

Multiple Choice

Which of the following situations violates the matching principle during 2019 for a real estate company that pays its agents on commission?


A) Sales commissions are charged to expense in 2019 on all sales made in 2019 even though some of the commissions have not been paid.
B) Insurance expense is recognized for the total cost of a 1-year policy purchased in July 2019.
C) Wages expense is recognized in 2019 even though payday is not until sometime in 2020.
D) Sales commissions paid in 2019 for 2020 commissions are recorded as prepaid expenses for 2019.

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