The Matching Principle Requires That

question 67

Multiple Choice

The matching principle requires that:

• A)revenues earned and expenses incurred in generating those revenues should be reported in the same income statement.
• B)non-operating gains and losses should be netted against each other.
• C)a proportion of each dollar collected will be assumed to be a recovery of cost.
• D)assets will be matched to the liabilities incurred to purchase them.

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Definitions:

Mutual Understanding

A shared knowledge or agreement between parties that is developed through communication and empathy.

Negotiation Techniques

Strategies employed to reach an agreement between two or more parties with differing interests.

Positions

The specific outcomes or demands that negotiating parties initially put forward as their goals.

Competence

Competence is the ability to perform a task or role successfully, demonstrating a required level of skill, knowledge, and judgment.