What types of accounts are "matched" when the matching concept is used in a discussion of accrual accounting?
A) Expenses and revenues
B) Expenses and liabilities
C) Assets and stockholders' equity
D) Assets and liabilities

Question

Quizplus · Accepted Answer

The matching concept in accrual accounting requires that expenses be matched with the revenues they helped to generate. Therefore, the types of accounts that are "matched" are expenses and revenues. Option B (expenses and liabilities) is not correct because liabilities are not necessarily matched with expenses. Option C and D are also not correct because stockholders' equity and assets are not directly matched with each other under the matching concept.

What Types of Accounts Are "Matched" When the Matching Concept