The Matching Principle Is

question 96

Multiple Choice

The matching principle is:

• A) A valuation method.
• B) An expense recognition accounting principle.
• C) A cash basis reporting principle.
• D) An asset classification procedure.

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Definitions:

Year-End

The end of an accounting period, typically culminating in the closing of books and preparation of financial statements.

Deferral

An accounting principle where revenue or expenses are recognized at a later date than when they were initially incurred.

Nominal Accounts

Accounts that are closed at the end of every accounting period, which include revenues, expenses, gains, and losses.

Real Accounts

Permanent accounts in accounting that show the ongoing financial state of a company's assets, liabilities, and shareholders' equity.