Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 41)
Which of the following is a key purpose of the matching principle in accounting?
To ensure that all transactions are recorded in the correct accounting period.
To match revenues with the expenses incurred to generate those revenues.
To ensure that assets and liabilities are properly valued.
To comply with the accrual basis of accounting.
Explanation
The matching principle is about linking expenses with the revenue they create.
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