Which of the Following Statements Regarding the Matching Principle Is

question 29

Multiple Choice

Which of the following statements regarding the matching principle is correct?

• A)The matching principle is never relevant to tax accounting.
• B)The matching principle of financial accounting is an important component of the cash method of accounting.
• C)The matching principle of financial accounting is the cornerstone of accrual basis tax accounting.
• D)The matching principle of financial accounting is sometimes relevant to timing deductions for an accrual basis taxpayer's recurring items.
• E)None of the above.

---

Definitions:

Geographic Distance

Reflects the physical space between two points on the earth, often impacting economic, social, and political interactions.

Nonequity Modes

International business arrangements that do not involve the exchange of ownership shares, such as licensing agreements and management contracts.

Equity Modes

Methods or strategies employed in acquiring ownership or stakes in companies.

Liability of Foreignness

The additional costs and risks that firms operating in a foreign country incur, compared to domestic firms.