Matching concept

Companies make sacrifices known as expenses to obtain benefits called revenues. The accurate

measurement of net income requires that expenses be matched with revenues. In some circumstances

matching a particular expense directly with revenue is difficult or impossible. In these

circumstances, the expense is matched with the period in which it is incurred.

Required

Distinguish the following items that could be matched directly with revenues from the items that would be classified as period expenses.

a. Sales commissions paid to employees.

b. Advertising expense.

c. Rent expense.

d. The cost of land that has been sold.