The accounting matching principle dictates that we:

Question

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The accounting matching principle dictates that expenses should be matched with the revenues they generate, and prorating the cost of an asset over its expected economic life is a way to match expenses with the revenues they generate over time. Option A is incorrect because it suggests matching expenses with the employees that incur them, which is not a principle of modern accounting. Option C is incorrect because it suggests invoicing the customer as soon as the merchandise is produced, whereas revenues should be recognized when they are earned, not necessarily when the goods are produced.

The Accounting Matching Principle Dictates That We