The matching principle is concerned with matching:
A) Income earned with expenses incurred in earning that income
B) Assets acquired with liabilities owed in acquiring those assets
C) Matching cash received with cash paid
D) Profits with shareholders' funds

Question

Quizplus · Accepted Answer

The matching principle in accounting states that expenses should be recorded in the period in which they are incurred to generate revenues, thus matching expenses directly with the revenues they help to generate.

The Matching Principle Is Concerned with Matching