The matching principle in accounting requires the matching of
A) revenue earned with the expenses incurred to produce the revenue.
B) revenue earned with the assets used to produce the revenue.
C) revenue earned with the liabilities incurred to produce the revenue.
D) revenue earned with the assets used less the liabilities incurred.

Question

Quizplus · Accepted Answer

The matching principle in accounting requires that revenue earned must be matched with the expenses incurred to generate the revenue. This means that the expenses must be reported in the same accounting period as the revenue they helped to generate. This principle ensures that the net income reported on the financial statements is an accurate representation of the revenues earned and the expenses incurred during the same period.

The Matching Principle in Accounting Requires the Matching of