Multiple choice

The determination of expenses for an accounting period is based on the principal of

  1. objectivity

  2. materiality

  3. matching

  4. periodicity

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The matching principle requires that expenses incurred in generating revenue should be recognized in the same accounting period as the related revenue. This ensures accurate measurement of net income for the period by matching efforts (expenses) with accomplishments (revenues).