The matching concept most significantly influences which financial statement?
A)Balance sheet
B)Income statement
C)Statement of changes in stockholders' equity
D)Statement of cash flows

Question

Quizplus · Accepted Answer

The matching concept is the accounting principle that states that expenses should be recognized in the same period as the revenues they helped to generate. This principle significantly influences the income statement, as it determines the matching of expenses to revenues to calculate net income.

The Matching Concept Most Significantly Influences Which Financial Statement