The matching principle in accounting requires the matching of a. revenue earned with the liabilities incurred to produce the revenue. b. revenue earned with the assets used to produce the revenue. c. revenue earned with the assets used less the liabilities incurred. d. revenue earned with the expenses incurred to produce the revenue.

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.