The matching principle

Select one:

a. addresses the relationship between the journal and the balance sheet

b. determines whether the normal balance of an account is a debit or credit

c. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance

d. states that the revenues and related expenses should be reported in the same period

Question

Business

Jayleen Sullivan

24 December, 05:59

The matching principle

Select one:

a. addresses the relationship between the journal and the balance sheet

b. determines whether the normal balance of an account is a debit or credit

c. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance

d. states that the revenues and related expenses should be reported in the same period

+2

Answers (1)

Know the Answer?

Zaniyah Novak · Answer 1

Answer: The matching principle "d. states that the revenues and related expenses should be reported in the same period".

Explanation: The application of this principle is a consequence of double entry; In the specific case of the Correspondence Principle we refer to the relationship that exists between an income and expense at the time of registering a transaction. It can be summarized in the following statement:

For every income there is an expense and for every expense there is an income.