Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 4)
What is the main objective of the matching principle?
To match assets with liabilities.
To match expenses with related revenues in the same accounting period.
To match cash inflows and outflows.
To match the owner's equity with revenues.
Explication
The main objective of the matching principle is to match expenses with related revenues in the same accounting period.