Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 21)

Which of the following is true regarding the matching principle in accounting?

Expenses are recognized when cash is paid.

Revenues and expenses are recognized in the same period.

Assets are matched with liabilities.

All cash inflows must match cash outflows

The matching principle requires that expenses be recognized in the same period as the revenues they helped generate.