The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that
A) assets should be matched with liabilities.
B) efforts should be matched with accomplishments.
C) owner withdrawals should be matched with owner contributions.
D) cash payments should be matched with cash receipts.

Question

Quizplus · Accepted Answer

The matching principle is based on the idea that expenses should be matched with the related revenues they helped generate. This means that efforts (expenses) should be matched with accomplishments (revenues). Option A is incorrect as it refers to the accounting equation (assets = liabilities + equity) and not the matching principle. Option C and D are also incorrect as they do not relate to the matching principle.

The Matching Principle States That Expenses Should Be Matched with Revenues