Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 4 - Accrual Accounting Concepts - Questions - Page 200: 4

Answer

As per the matching principal, let the expenses follow the revenues.

Work Step by Step

Since the revenue is for the month of April, the expenses of $4,500 ($2,500 of April & $2,000 paid in May), should be reported as expenses for the month April.
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