The matching principle means which of the following?
A) Revenues are subtracted from expenses.
B) Expenses are subtracted from revenues.
C) Assets are subtracted from liabilities.
D) Liabilities are subtracted from expenses.

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be matched with the revenues they help to generate. Therefore, expenses are subtracted from revenues to determine the net income or loss for a period.

The Matching Principle Means Which of the Following