(Solved by Humans)-Your Turn 2-5 An example of the matching principle is cost of goods sold with sales. The cost of...

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Your Turn 2-5 An example of the matching principle is cost of goods sold with sales. The cost of the T-shirts sold is put on the same income statement as the sales revenue from the sale of those shirts. Your Turn 2-6 The difference between cash basis and accrual basis accounting is the timing of recogniz­ ing revenues and expenses. Cash basis accounting recognizes revenue when the cash is col­ lected and expenses when cash is disbursed. In accrual accounting, revenues are recognized in the period in which they are earned (by the completion of the work) and expenses are matched to the revenues they help create.