Which of the Following Best Describes the Expense Matching Principle

question 25

Multiple Choice

Which of the following best describes the expense matching principle?

• A) It requires expenses to be recorded when they are paid for.
• B) It requires expenses to be recorded when incurred to generate revenues.
• C)It requires expenses to be recorded consistent with the cash basis of accounting.
• D)It does not allow expenses to be recorded if they are incurred prior to being paiD.The matching principle requires that expenses be recorded when incurred in earning revenue.