The matching principle is concerned with:
A)when to recognize a transaction as a revenue or an expense.
B)which transactions result in cash inflows or outflows.
C)matching revenues to the expenses incurred each period.
D)how a company earns its revenues and why it incurs expenses.

Question

Quizplus · Accepted Answer

The matching principle is an accounting concept that dictates that expenses should be recorded in the same period as the revenues they help to generate, ensuring that financial statements accurately reflect a company's financial performance.

The Matching Principle Is Concerned With