Asked by Cashmere Wilson on May 18, 2024
Verified
The matching principle supports matching expenses with the related revenues.
Matching Principle
An accounting principle that requires companies to report expenses at the same time as the revenues they are related to are earned.
Matching Expenses
An accounting principle that matches expenses with the revenues they generate within the same accounting period.
- Comprehend the basic principles of revenue recognition and the matching principle as essential elements of accrual accounting.
Verified Answer
DP
Danielle PattersonMay 24, 2024
Final Answer :
True
Explanation :
The matching principle states that expenses should be recognized and recorded in the same period as the related revenues. This helps to accurately reflect the true financial performance of a company in a specific period.
Learning Objectives
- Comprehend the basic principles of revenue recognition and the matching principle as essential elements of accrual accounting.
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