Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 8)
What is the purpose of the 'matching principle' in accounting?
To match assets with liabilities.
To match revenues with expenses in the same accounting period.
To match debits with credits.
To match cash inflows with cash outflows.
Explanation
The matching principle requires that expenses are recognized in the same period as the revenues they help generate.
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