Matching requires expenses be recorded and reported in the same period as the revenue that it helped to generate.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenue that they helped to generate in order to accurately reflect the financial performance of a business. This ensures that financial statements provide a true and fair view of a company's operations and financial position.

Matching Requires Expenses Be Recorded and Reported in the Same