The accounting principle of matching expenses to revenues meets which of the following objectives of the financial statements?

Question

Quizplus · Accepted Answer

The objective of matching expenses to revenues is to measure economic activity and provide users of the financial statements with information related to the costs incurred in generating revenue. This helps users to evaluate the profitability of the entity and its ability to generate future cash flows. It is not related to maximizing income or income tax minimization.

The Accounting Principle of Matching Expenses to Revenues Meets Which