Which of the following should be considered first in applying the matching concept?
A)Costs should be matched against the revenue directly produced.
B)Costs should be matched to revenue in a rational and systematic manner.
C)Costs should be recognized as period expenses when incurred.
D)Costs should be recognized as expenses when cash is paid.

Question

Quizplus · Accepted Answer

The matching concept requires that expenses be matched with the revenues they help to generate, so costs should be matched against the revenue directly produced.

Which of the Following Should Be Considered First in Applying