The matching principle requires that expenses be matched with revenues.

Name: The matching principle requires that expenses be matched with revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The matching principle is a fundamental concept in accounting which requires that expenses be matched with the revenues earned during the same period. This principle is based on the idea that to accurately measure the profitability of a business, the expenses incurred in generating revenue should be recognized in the same period as the revenue.

The Matching Principle Requires That Expenses Be Matched with Revenues