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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

The __________ requires that expenses be matched up with revenue for the same period of time.

  1. a. matching principle
  2. b. expense principle
  3. c. revenue recognition principle
  4. d. separate entity concept

To determine

Find the correct option, the option that indicates the correct term for the given explanation.

Explanation

Matching principle: This accounting principle states that a company should recognize expenses in the same period those expenses are incurred to earn revenues.

Justification for correct answer: Matching principle is the accounting principle that matches the expenses incurred and the revenue earned in the same period. Hence, option (a) is correct.

Justification for incorrect answers:

  • ■ Option (b) is incorrect because ...

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