Question

Generally accepted accounting principles (GAAP) requires the expenses incurred to generate revenues be matched in the same period.
True/False

Answer 1

Answer:

The statement is: True.

Explanation:

The matching principle of the Generally Accepted Accounting Principles (GAAP) states that the expenses a company incurs during a period must match with the revenues those expenses were incurred during the same period. This principle is usually implemented with the accrual accounting method leaving in clear that expenses are incurred to generate profit.