Question

There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amounts and record them would be a violation of the a.practice of consistency. b.concept of historical cost. c.convention of conservation. d.matching principle.

Answer 1

Answer: D. Matching principle

Explanation:

The matching principle simply states that organizations or businesses should recognize both the revenues that the company makes and their related expenses that are incurred by the company in same accounting period.

The main idea behind the matching concept is so that earnings that are made by a business will not be misstated.