The matching principle states that:
A)costs should be recorded on the income statement whenever those costs can be reliably determined.
B)costs should be recorded when paid.
C)the costs of producing an item should be recorded when the sale of that item is recorded as revenue.
D)sales should be recorded when the payment for that sale is received.
E)sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded in the same period as the revenues they help to generate, ensuring that financial statements reflect the true financial performance of a company.

The Matching Principle States That