The matching concept a. determines that expenses related to revenue be reported at the same time the revenue is reported b. addresses the relationship between the journal and the balance sheet c. determines whether the normal balance of an account is a debit or credit d. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance

Question

Alyson Bass

Business

17 November, 19:40

The matching concept a. determines that expenses related to revenue be reported at the same time the revenue is reported b. addresses the relationship between the journal and the balance sheet c. determines whether the normal balance of an account is a debit or credit d. requires that the dollar amount of debits equal the dollar amount of credits on a trial balance

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Jakayla Walker · Answer 1

The correct answer is letter "A": determines that expenses related to revenue be reported at the same time the revenue is reported.

Explanation:

According to the matching accounting principle, during the same accounting period, the revenues and expenditures needed to generate such revenues have to be recorded. This is part of the accrual accounting method that specifies expenses and revenue must be recorded when incurred not when cash is received.