The matching principle requires that accrued interest on outstanding accounts receivable be recorded at the end of an accounting period.

Question

Quizplus · Accepted Answer

The matching principle requires expenses to be matched with revenues in the period in which the revenue was earned, not the recording of accrued interest on accounts receivable, which is related to the accrual basis of accounting.

The Matching Principle Requires That Accrued Interest on Outstanding Accounts