10 Jul Periodicity and the matching principle attempt to provide for a t
Periodicity and the matching principle attempt to provide for a trustworthy net income. Adjustments to the accounting records recognize revenue and expenses in the proper time period. Generally Accepted Accounting Principles requires that all costs, including overhead be included in the cost of the product. Direct Costing or Variable Costing places overhead as a period expense (See exhibit 8-6 page 329 in the MA textbook). The proper allocation of cost is an essential accounting principle for trustworthy earnings, but it does not work in terms of salvation. As humans, we have a tendency to match our good deeds against our bad deeds and then feel good about ourselves. Can a dedicated life of service to God guarantee salvation? If you are depending on Grace, the answer is no! Only through the blood of Jesus Christ can we find salvation. It is not earned, and it is certainly not a matter of doing more good deeds than bad deeds.Read Ephesians 2:4-9. Is salvation is a gift from God, or the matching of good deeds against bad deeds?
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