By matching revenues and expenses in the same period in which they are incurred
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 revenues and expenses in the same period in which they are incurred is the basis of accrual accounting and enables the proper reporting of net income or loss on the income statement. This ensures that the financial statements accurately reflect the financial performance of a business during a given period.

By Matching Revenues and Expenses in the Same Period in Which