The matching principle:

(A) Matches the expense incurred to generate the revenue with the invoice

(B) Matches the expense incurred to generate the revenue with net income

(C) Matches the event of the selling of the goods or service with the sales price

(D) Matches the expense incurred to generate the revenue with the accounting period in which the revenue is recognized

Question

Business

Janae Mullins

27 July, 10:20

The matching principle:

(A) Matches the expense incurred to generate the revenue with the invoice

(B) Matches the expense incurred to generate the revenue with net income

(C) Matches the event of the selling of the goods or service with the sales price

(D) Matches the expense incurred to generate the revenue with the accounting period in which the revenue is recognized

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Answers (1)

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Jasiah Bailey · Answer 1

Answer: Option D

Explanation: Matching principle is an accounting standard which states that the expenses incurred in a period should be recognized in the period in which the revenue relating to that expense is earned regardless of the fact when the cash exchange has been done.

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So, as per the given problem option D is the right answer.