Answered

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Alpha Software Inc. made an advance rent payment of $6,000 for its warehouse. The accounting period for which the company paid the rent was from January to June 2014. The accountant recorded a rent payment of $1,000 in the month of January, 2014. Which accounting principle guides this action? A. accounting periodicity B. matching principle C. historical cost D. business entity

Sagot :

Parrain

Based on the fact that the accountant recorded the rent payment for the month of January, the principle here is the B. matching principle.

What is the matching principle?

The matching principle calls for apportioning expenses to the period they were incurred so that they can be matched with the revenue in that period.

The accountant recorded $1,000 for rent in January $1,000 would be apportioned per month based on the total rent paid for 6 months.

Find out more on the matching principle at https://brainly.com/question/15700799.

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