Accounting for IGCSE & O level - Advanced Principles (Section 1 - No. 32)
Which of the following represents a core tenet of the matching principle?
Costs must be matched against related income.
Revenues are recognized when cash is received.
Only transactions that generate profit are to be recorded.
Assets must be recorded at their historical cost.
Explication
The matching principle emphasizes the need to match expenses with the revenues they help generate in the same accounting period.