Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 5 - No. 3)
Which of the following describes the matching principle?
Assets should be recorded at their original cost.
Expenses should be recognized in the same period as the revenues they help generate.
The business should be viewed as separate from its owners.
Information is only important if it influences decisions.
Explanation
The matching principle links expenses to the revenues they help earn.
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