Which of the Following Accounting Elements Does the Matching Principle

question 190

Multiple Choice

Which of the following accounting elements does the matching principle help to match?

• A) revenues and liabilities
• B) expenses and assets
• C) expenses and revenues
• D) expenses and liabilities

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Definitions:

Assets

Resources owned by a company that have economic value and can be used to meet debts or commitments.

Liability

A financial obligation or amount owed by a business or individual, arising from past transactions or events.

Asset

An item of value owned by an individual or corporation, expected to provide future benefits or value.

Stockholders' Equity

Stockholders' Equity represents the ownership interest of shareholders in the net assets of a company, calculated as the difference between total assets and total liabilities.