Supplies expense on the Team Shirts' income statement represents only supplies that were used to earn revenue during the accounting period.The accounting rule that applies is the ________.

Question

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The matching principle states that expenses should be matched with the revenues they helped generate in the same accounting period. Therefore, only supplies used to earn revenue during the accounting period should be included in the supplies expense on the income statement.

Supplies Expense on the Team Shirts' Income Statement Represents Only