The matching principle says:

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be recognized in the same period as the related revenues. This means that the recognition of an asset's cost should match its service life, as the asset will generate revenue over its useful life. Option A is incorrect because it only applies to recording the cost of an asset, not when the cost should be recognized. Option C is incorrect because it discusses invoicing customers, which is not specifically related to the matching principle. Option D is incorrect because the matching principle applies to both cash and non-cash transactions.

The Matching Principle Says