Complete the definitions below by filling in the selecting the the correct choice from the drop-down list: - Expenses should be matched to the revenue, which they helped generate, in the period in which the revenue is reported This is known as the [Select] [Select] accruals convention matching concept the ability of s square ation that refers to ers' decision -making. - A fundament

Question

Complete the definitions below by filling in the selecting the the correct choice from the drop-down list: - Expenses should be matched to the revenue, which they helped generate, in the period in which the revenue is reported This is known as the [Select] [Select] accruals convention matching concept the ability of s square ation that refers to ers' decision -making. - A fundament

Answer 1

Matching Principle

Answer 2

The definition being described here relates to the accounting principle of Matching. The Matching Principle is an accounting concept where companies report an expense on its income statement in the period in which they utilize the item or service. With regards to revenue and expenses, the principle becomes even more specific—it states the action of translating expenditure that directly relates to earned revenue, into the space of actual receiving of revenue they create.

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