Matching is: Multiple Choice A valuation method. A result of recognizing revenues and expenses that arise from the same transaction. A cash basis reporting principle.

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Dragonfly

Business

3 May, 23:49

Matching is: Multiple Choice A valuation method. A result of recognizing revenues and expenses that arise from the same transaction. A cash basis reporting principle.

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Answers (1)

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Chad Baker · Answer 1

A result of recognizing revenues and expenses that arise from the same transaction.

Explanation:

Matching concept in accounting requires that the cost incurred in generating revenue during a period be matched and recognized in the same period as the revenue.

This is to ensure that earnings for the given period is not misstated (overstated or understated). It is a concept that promotes the accrual basis of accounting as well as the revenue recognition measures.