A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Which of the following is a TRUE statement about the matching principle?
A) The matching principle states that expenses should be recognized when cash is paid for an item.
B) The matching principle states that assets must match, or equal, liabilities plus shareholders' equity.
C) The matching principle states that expenses incurred should be recognized in the same period as revenues earned.
D) The matching principle states that, after adjustments, expenses must equal revenues in each accounting period.
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