Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 2 - No. 23)

Which of the following statements best describes the matching principle?

Revenues are recognized when cash is received.

Expenses are recognized when cash is paid.

Expenses are recognized in the same period as the revenues they help generate.

Assets are matched with liabilities.

The matching principle states that expenses should be recognized in the same period as the revenues they help generate.