The matching principle states that expenses should be matched with revenues to determine net income for an accounting period.

Question

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The matching principle is a fundamental concept in accounting, which requires that expenses incurred during an accounting period should be matched with the revenues earned during that same period. The goal of this principle is to provide a more accurate measure of the entity's profitability by associating the costs directly with the corresponding revenue streams. This principle is vital in providing a consistent and accurate measurement of the entity's financial performance. Therefore, the answer to this question is A, true.

The Matching Principle States That Expenses Should Be Matched with Revenues