The application of the matching principle results in subtracting revenues from expenses to obtain net income or net loss.

Name: The application of the matching principle results in subtracting revenues from expenses to obtain net income or net loss.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The matching principle involves matching expenses with the revenues they help to generate, not subtracting revenues from expenses. Net income or net loss is calculated by subtracting expenses from revenues.

The Application of the Matching Principle Results in Subtracting Revenues