The matching concept
A) addresses the relationship between the journal and the balance sheet
B) determines whether the normal balance of an account is a debit or credit
C) requires that the dollar amount of debits equal the dollar amount of credits on a trial balance
D) states that expenses related to revenue be reported at the same time the revenue is reported

Question

Quizplus · Accepted Answer

The matching concept states that expenses related to revenue must be reported at the same time the revenue is reported. This means that expenses must be matched against the revenue they helped to generate in a given accounting period. This is important for accurate financial reporting and decision-making. Choices A, B, and C are all relevant accounting concepts, but they do not directly relate to the matching concept.

The Matching Concept