The matching rule is applied
A)because it is required by the Internal Revenue Code.
B)by expensing certain items immediately and in their entirety.
C)to help make the bookkeeper's job easier.
D)to help produce an accurate measurement of a company's performance.

Question

Quizplus · Accepted Answer

The matching rule is applied to help produce an accurate measurement of a company's performance. It aims to match expenses incurred in a specific period with the revenue generated in the same period, allowing for a more accurate determination of profitability. While the Internal Revenue Code does require certain accounting methods, the matching rule is not one of them. The rule is not applied to make the bookkeeper's job easier, although it may have the side-effect of simplifying the accounting process for some companies. The practice of immediately expensing certain items is called expensing, and while it may be related to the matching rule, it is not the same thing as the matching rule.

The Matching Rule Is Applied