COVID-19: We are in this together. Access free textbook solutions with step-by-step explanations.

Find study resources 숿

This textbook is available at

Financial & Managerial Accounting See all exercises

Chapter 3, End of Chapter, Brief Exercises, Exercise 3.10

Here is a tip:

Expenses are the cost borne by a company in process for generating revenue.

Explanation

According to the matching principle of accounting, expenses are recognized in the period in which they generate revenue for the
business, whether the cash is paid or not.
Thus, salary expenses for the month of May will be determined by adding the salary amounting to $30,000 paid in the month of May
for the work performed by employees in the month of May (SalaryMay) and the salary amounting to $10,000 paid in the month of June
for the work performed by employees in the month of May (SalaryJune).
 

Expenses = SalaryMay + SalaryJune

= $30, 000 + $10, 000
= $40, 000

 
Salary paid in the month of May for the work performed by employees in the month of April, will not be considered as expenses
because these expenses generated revenue in the month of April.

Veri ed Answer 숥

$40,000

How would you rate this answer and explanation? 싙 Helpful 싗 Unhelpful

Page 124 섈 쉋

쇲 BE, Ex 3.9 E, Ex 3.1 쇰

Textbook Solutions / Financial & Managerial Accounting / Ch 3, End of Chapter, Ex 3.10

Company Get Course Hero Careers

About Us iOS Leadership

Scholarships Android Careers
Sitemap Educators Campus Rep Program
Standardized Tests
Education Summit
Educator Resources

Help Legal Connect with Us

Contact Us Copyright Policy College Life
FAQ Academic Integrity Facebook
Feedback Our Honor Code Twitter
Privacy Policy LinkedIn
Terms of Use YouTube
Instagram

Copyright © 2020. Course Hero, Inc.

Course Hero is not sponsored or endorsed by any college or university.