The matching principle requires that the inventory valuation method follow the physical flow of inventory.

Name: The matching principle requires that the inventory valuation method follow the physical flow of inventory.
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Question

Quizplus · Accepted Answer

The matching principle requires expenses to be recorded in the same period as the revenues they help generate, but it does not dictate that inventory valuation methods must follow the physical flow of inventory.

The Matching Principle Requires That the Inventory Valuation Method Follow