Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 40)

What does the matching principle require?

Expenses to be recognized in the period when they are paid.

Income to be recognized only when cash is received.

Costs to be matched against related revenue in the same accounting period.

Assets to be recorded at their current market value.

The matching principle requires that costs be matched against related revenue in the same accounting period.