Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same period.

True/False

Question

Business

Ally Phillips

22 November, 23:34

Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same period.

True/False

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Answers (1)

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Lacey Rogers · Answer 1

The statement is: True.

Explanation:

The matching principle of the Generally Accepted Accounting Principles (GAAP) states that the expenses a company incurs during a period must match with the revenues those expenses were incurred during the same period. This principle is usually implemented with the accrual accounting method leaving in clear that expenses are incurred to generate profit.

Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same period.True/False

Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same period.

True/False