By matching revenues and expenses in the same period in which they incur
A) net income or loss will always be underestimated.
B) net income or loss will always be overestimated.
C) net income or loss will be properly reported on the income statement
D) net income or loss will not be determined.

Question

Quizplus · Accepted Answer

Matching revenues and expenses in the same period in which they incur is the basis of accrual accounting, which provides a more accurate measure of a company's profitability. By doing this, net income or loss will be properly reported on the income statement.

By Matching Revenues and Expenses in the Same Period in Which