The practice of matching
A. dictates that efforts (expenditures) be matched with associated cash flow.
B. requires arbitrary allocation of an assets contribution to a revenue stream.
C. illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves.
D. is required by GAAP to approximate an assets contribution to an entitys periodic cash flow.
Answer:C
The practice of matching
A. dictates that efforts (expenditures) be matched with associated cash flow. B. requires arbitrary allocation of an assets contribution to a revenue stream. C. illustrates the cause and effect relationship between money spent to earn revenues and the revenues themselves. D. is required by GAAP to approximate an assets contribution to an entitys periodic cash flow.