The matching principle states that expenses should be recorded in the same period as the related revenues.

Question

Quizplus · Accepted Answer

The matching principle is a basic accounting concept that ensures that all expenses associated with generating revenue are recorded in the same period as the related revenue. This is important because it helps to accurately reflect the financial performance of a business and provides a more accurate picture of its profitability.

The Matching Principle States That Expenses Should Be Recorded in the Same