Question

17. The matching principle requires that a) assets will be matched to the liabilities incurred to purchase them 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) revenues earned and expenses incurred in generating those revenues should be reported in the same income statement e) none of the above

Answer 1

Answer:

D

Explanation:

The matching principle requires that  revenues earned and expenses incurred in generating those revenues should be reported in the same income statement

the purpose of this is to avoid misstating earnings