Question

What Is the Matching Principle in GAAP Accounting?

Answer 1

The matching principle states that a business should report the expenses incurred during an accounting period in which the related revenues are earned. This principle recognises the fact that without incurring expenses revenue cannot be earned.

Also read:

• MCQs on GAAP
• GAAP (Generally Accepted Accounting Principles)
• Difference Between GAAP and IFRS

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