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What is the Matching Principle?

6. What is the Matching Principle?

1. The concept that the financial statements of an organization
2. The underlying accounting principle that the dollar will remain constant across fiscal periods
3. Every business transaction requires recordation in two different accounts
4. Accounting principle for recording revenues and expenses

Answer: D) Accounting principle for recording revenues and expenses

Explanation:

The matching principle is a bookkeeping rule for recording incomes and costs. It necessitates that a business records costs close by incomes procured. Preferably, the two of them fall inside a similar timeframe for the clearest following. This rule perceives that organizations should cause costs to procure incomes.