The Matching Principle States That Expenses Should Be Matched with Revenues

question 46

Multiple Choice

The matching principle states that expenses should be matched with revenues. Another way of stating the principle is to say that

• A) assets should be matched with liabilities.
• B) efforts should be matched with accomplishments.
• C) owner withdrawals should be matched with owner contributions.
• D) cash payments should be matched with cash receipts.

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Definitions:

Compliance

The action of conforming to a rule, request, or demand, often influenced by external pressures or obligations.

Accommodation

Adjusting one's behavior or communication style to align more closely with another person's preferences or needs.

Collaboration

The act of working with others to achieve a common goal through sharing ideas, resources, and responsibilities.

Competition

The rivalry among businesses or individuals for resources, recognition, or success within a given domain.