1. The matching principle requires that

A. expenses are recorded when they are incurred during a period.

B. revenue is recorded only after it has been earned.

C. time is divided into annual periods to measure expenses properly.

D. revenue is recorded after cash is received.

2. The adjustment for accrued revenues

A. increases a revenue with a debit and increases an asset with a credit.

B. increases an asset with a debit and increases a revenue with a credit.

C. decreases a revenue with a debit and increases an asset with a credit.

D. decreases a liability with a debit and increases a revenue with a credit.