Which of the following best describes the matching principle?
A)It requires expenses to be recorded when they are paid for.
B)It requires expenses to be recorded when incurred to generate revenues.
C)It requires expenses to be recorded consistent with the cash basis of accounting.
D)It does not allow expenses to be recorded if they are incurred prior to being paid for.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded when incurred in earning revenue.

Which of the Following Best Describes the Matching Principle