Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 43)
Which of the following is a component of the matching principle?
Recognizing revenue when cash is received.
Recognizing expenses in the same period as related revenue.
Accruing expenses for amounts owed but not yet paid.
Matching costs to the period when the benefit is received.
Explanation
Matching principle focuses on linking revenues and expenses and the period when benefit is received. Accruals are also crucial for recognizing all incurred costs.
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