Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 14)
What does the matching principle refer to?
The business owner’s personal financial affairs and business finances should be recorded separately.
Matching the expenses incurred in an accounting period to the revenues earned in the same period.
Dividing the lifetime of a business into successive accounting periods.
The business is expected to continue operating for the foreseeable future.
Explanation
The matching principle refers to matching the expenses incurred in an accounting period to the revenues earned in the same period.
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