Question

What happens if you violate the matching principle in accounting?

• A. It will always result in a loss to the company
• B. Investors will appreciate the lower tax burden
• C. Accounting reports are more accurate since both revenue and expenses will be recorded when they actually occurred
• D. Accounting reports will not reflect an accurate financial assessment of the organization

Answer 1

The correct option is D

Accounting reports will not reflect an accurate financial assessment of the organization

If the matching concept is violated in accounting, accounting reports will not reflect an accurate financial assessment of the organization.