What is the matching principle?
A) The average amount of taxes a corporation pays should match exactly their reported income.
B) Cash inflows should be matched with cash outflows.
C) Assets should always equal liabilities plus owners equity.
D) Expenses should be matched to the revenues they help generate.

Question

Quizplus · Accepted Answer

The matching principle is a fundamental accounting concept that dictates that expenses should be recorded in the same period as the revenues they help to generate, ensuring that financial statements accurately reflect a company's financial performance.

What Is the Matching Principle