Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The matching principle, also known as the expense recognition principle, directs accountants to identify and measure all expenses incurred during the period and to match

The matching principle, also known as the expense recognition principle, directs accountants to identify and measure all expenses incurred during the period and to match the expenses against the revenues during the period. The main goal is to measure net income. The matching principle is important to users of financial statements because in order to have an accurate balance sheet, assets have to match up with liabilities and owners equity. If they do not, it means that there is some incorrect in

Step by Step Solution

3.41 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Definition of Matching Principle The matching principle is one of the basic underlying guidelines in accounting The matching principle directs a compa... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions