Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 25 - No. 1)
Which of the following statements correctly describes the matching principle in accounting for clubs and societies?
Matching income and expenditure to the specific period they relate to.
Matching all cash receipts and payments.
Matching assets and liabilities.
Matching the income and expenditure accounts with the statement of financial position.
Explanation
The matching principle is the principle of recognizing expenses in the same accounting period as the revenues they help to generate.
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