The matching principle in accounting requires the matching of debits and credits.
Identify whether the given statement is true or false.
False statement.
Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.
The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.
Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Financial & Managerial Accounting
Accounting Information Systems
Financial And Managerial Accounting
Corporate Financial Accounting
Financial Accounting
Fundamentals of Financial Management (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Management, Loose-Leaf Version
Foundations of Business (MindTap Course List)
Principles of Economics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Contemporary Marketing
Essentials of Economics (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
Accounting Information Systems
College Accounting (Book Only): A Career Approach
Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Financial & Managerial Accounting
MKTG 12:STUDENT ED.-TEXT
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Statistics for Business & Economics, Revised (MindTap Course List)
Exploring Economics
Fundamentals of Financial Management (MindTap Course List)
Corporate Financial Accounting
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Survey of Accounting (Accounting I)
Economics (MindTap Course List)
Macroeconomics
Cornerstones of Cost Management (Cornerstones Series)
Economics For Today
Microeconomics
Practical Management Science
Purchasing and Supply Chain Management
Cornerstones of Financial Accounting
Managerial Accounting
Macroeconomics: Private and Public Choice (MindTap Course List)
Principles of Microeconomics
Microeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
MACROECONOMICS FOR TODAY
Understanding Management (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)