Which of the principles below
Which of the principles below does Val follow when shereviews her records to make sure that recorded accounting eventscorrespond to the actual costs?
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Time period principle
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Measurement principle
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Full disclosure principle
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Matching principle
Answer:
Time periodprinciple
This accounting principle statesthat the business should report its financial data in the form offinancial statements related to a specific time period. Theseperiods can be monthly, quarterly, semi-annually, annually or anyother period based on the business policies or as prescribed by theapplicable laws.
MeasurementPrinciple
This principle states that theaccounting events should correspond to the actual costs.
Full disclosureprinciple
This principle states that the allthe businesses should report all their financial statements andother related information to the users of the financialinformation.
Matchingprinciple
This principle states that a companyto report an expense on its income statement in the period in whichthe related revenues are earned. The matching principle isassociated with the accrual basis of accounting and adjustingentries.
Hence, the correct option isMeasurement principle.
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