Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 37 - No. 33)
The matching principle is best illustrated by:
Recording revenue only when cash is received.
Recognizing expenses in the period the cash is paid.
Matching expenses with the revenues they generate in the same accounting period.
Ignoring all expenses to maximize profits.
Explanation
The matching principle seeks to report revenues and their associated expenses in the same period.
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