The matching principle states that we recognize expenses in the same period as the revenues they help to generate.

Question

Quizplus · Accepted Answer

The statement is true. The matching principle is a fundamental concept of accounting that requires companies to recognize expenses in the same period as the related revenues. This principle helps to ensure that financial statements accurately reflect a company's financial performance and profitability for a given period.

The Matching Principle States That We Recognize Expenses in the Same