There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amounts and record them would be a violation of the
A) convention of conservation.
B) concept of historical cost.
C) practice of consistency.
D) matching principle.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded in the same period as the revenues they help to generate. Estimating and recording liabilities like income tax payable ensures that expenses are matched with the appropriate revenue period.

There Are Some Liabilities, Such as Income Tax Payable, for Which