The matching principle is:
A) A valuation method.
B) An expense recognition accounting principle.
C) A cash basis reporting principle.
D) An asset classification procedure.

Question

Quizplus · Accepted Answer

The matching principle is an expense recognition accounting principle that requires expenses to be recognized in the same reporting period as the related revenues. This principle ensures that the financial statements accurately reflect the economic activity of the business during the period.

The Matching Principle Is