By matching revenue earned during the accounting period to related incurred expenses,
A) net income or loss will always be underestimated
B) net income or loss will always be overestimated
C) net income or loss will be properly reported on the income statement
D) net income or loss will not be determined

Question

Quizplus · Accepted Answer

Matching revenue earned during the accounting period to related incurred expenses is the basic principle of accrual accounting. This method ensures that net income or loss is properly reported on the income statement. Therefore, option C is the correct answer.

By Matching Revenue Earned During the Accounting Period to Related