The matching principle states that ________.
A) financial statements can be prepared for specific periods
B) a business's activities can be sliced into small time segments
C) all expenses should be recorded when they are incurred during the period
D) companies should record revenue when it has been earned

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded in the same period as the revenues they help to generate, ensuring that financial statements accurately reflect a company's financial performance.

The Matching Principle States That ________