Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 30)
Which of the following is true about the 'Matching Principle'?
It ensures that expenses are recognized in the period they were paid.
It matches expenses to the period in which they are incurred.
It matches revenues to the period in which the related expenses are incurred.
It matches revenues and expenses to the correct accounting period.
Explanation
The matching principle aligns the timing of revenue and expense recognition.
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