Thought Provocative question/Matching Principle

Joined
Dec 5, 2011
Messages
1
Reaction score
0
I am new to accounting and this question was on my test.

It was something like this

Last year I forgot to include expenses for travel from our petty cash fund. I though matching means include expenses in the same accounting period they helped to create revenues?

I wasn't sure on that one. I said that the expense should be included because it violates the matching principle. It is contribution to creating the revenue. I wasn't really sure about this, because I don;t really know how it works with the petty cash fund.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top