The matching principle is best demonstrated by
A) not recognizing any expense unless some revenue is realized.
B) associating effort (expense) with accomplishment (revenue).
C) recognizing prepaid rent received as revenue.
D) measuring expenses correctly.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be matched with the revenue they help generate. Option A is not entirely accurate as some expenses are recognized regardless of revenue, such as rent or salaries. Option C is incorrect because prepaid rent received is a liability, not revenue. Option D is a general principle but not specifically related to the matching principle.

The Matching Principle Is Best Demonstrated by