All of the following statements are true about the matching principle, except: It requires that the expenses recorded on the income statement be those associated with the sales recognized during the period. It is designed to give users of financial statements an idea of the firm's activities and profitability during a specific period of time. It relates to making judgements and estimates that result in lower profits and assets valuation estimates, as opposed to higher profits and asset valuation estimates. It may cause net income to understate cash flow