Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 32)
What is the fundamental concept behind the 'matching principle'?
Matching assets with liabilities.
Matching revenues with related expenses.
Matching debits with credits.
Matching current assets with current liabilities.
Explanation
The matching principle states that expenses should be recognized in the same accounting period as the revenues they helped generate.
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