Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 9)
What does the matching principle of accounting state?
Expenses should be recorded when cash is paid.
Revenues should be recorded when cash is received.
Expenses should be recorded in the same period as the revenues they help generate.
Revenues and expenses should be recorded in the same period.
Explanation
The matching principle aims to match expenses with the revenues they generate in the same accounting period.
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