Question

Match the expense recognition approaches with the most appropriate accounting event, to satisfy proper matching of revenues with expenses.
Drag statements on the right to match the left.
Cause-and-effect relationship Cost of goods sold
Specific time period Monthly salary payments to an office employee
Without regard to related revenue
in the period incurred Advertising expenditures

Answer 1

Answer:

Cause-and-effect relationship - Cost of goods sold

This follows the cause and effect relationship because if the goods were not to be sold they would not have incurred a cost. Because the goods were sold, the business incurred costs.

Specific time period - Monthly salary payments to an office employee

The salary is monthly which means that it is for the specific time period of a month.

Without regard to related revenue  in the period incurred - Advertising expenditures.

Advertising expenses are made without regard to the related revenue in the period because there is no sure and specific way to measure the impact of advertising on revenue.