The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

Question

Quizplus · Accepted Answer

The matching concept is a basic accounting principle which requires that expenses be recognized in the same period as the related revenue in order to accurately reflect the earning of the revenue. This principle ensures that the financial statements provide meaningful and relevant information about the company's financial performance during a particular period. Therefore, since the statement is true, the answer is A.

The Matching Concept Requires Expenses Be Recorded in the Same