Q. 3-6RQ
Question
Under the matching principle, when are expenses recorded?
Step-by-Step Solution
Verified Answer
As per the matching principle, expenses should be recorded when it is incurred, and should match with the revenues earned.
1Accounting Principles
Accounting principles are the set of rules or guidelines, that are followed while preparing the financial statements.
2Explanation on Matching Principles
Matching principle provides the guidleines of recording the expenses of the business. It ensures the following:
- Expenses are recorded when it is incurred in the accounting period.
- Expenses tallies with the revenues for the period.
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