The matching principle states that
A)expenses should be matched with specific jobs.
B)expenses should be matched with revenues they generate.
C)revenues should be recorded in the period in which the payment is received.
D)expenses should be matched to assets which generated the expenses.

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be matched with the revenues they generate. This means that expenses should be recognized in the same period as the revenues they helped to generate. This principle ensures that the financial statements accurately reflect the economic activity of the business and provides users of the financial statements with important insights into the company's financial performance.

The Matching Principle States That