For which of the following accounts would the matching concept be the most appropriate?
A) Cost of goods sold.
B) Research and development.
C) Depreciation expense.
D) Sales.

Question

Quizplus · Accepted Answer

The matching concept states that expenses should be recognized in the same period as the revenue they help generate. Cost of goods sold is directly related to the sale of a product, and therefore matches with the revenue from the sale.

For Which of the Following Accounts Would the Matching Concept