What is the matching principle?
A) the process that relates current liabilities to long-term debt
B) the process that relates current assets to capital assets
C) the process that relates debt to total assets
D) the process that relates financial needs to financing requirements

Question

Quizplus · Accepted Answer

The matching principle in finance refers to aligning financial needs with appropriate financing requirements, ensuring that the duration and nature of financing match the financial needs of the business.

What Is the Matching Principle