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What does it mean by the matching principle in accounting? Expense are matched with generation of revenues to determine net income for an accounting period.

What does it mean by the matching principle in accounting?

Expense are matched with generation of revenues to determine net income for an accounting period.

Generation of revenue are matched with expenses to determine net income for the previous period.

Generation of revenue are matched with assets purchases to determine the efficiency of the asset usage.

Expenses are matched with asset purchases to determine the return on investment.

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