According to the matching principle,if costs associated with producing revenue in the current year are not paid in cash until the following year,the costs should be expensed in the current year.

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The matching principle states that expenses should be matched with the revenues they helped to generate in the same accounting period regardless of when payment is made. Therefore, if costs associated with producing revenue in the current year are not paid until the following year, they should still be expensed in the current year.

According to the Matching Principle,if Costs Associated with Producing Revenue