Neco Model Questions Vol1 2022 Financial Accounting Question 48

Practice objective / multiple choice question 48 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Easy Difficulty

Question 48 NECO_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

Define the matching principle in accounting and briefly explain why it is important for the accurate determination of profit.

Answer Options

A. The matching principle requires that all expenses be recorded at the end of the fiscal year, independent of revenue timing.

B. The matching principle dictates that assets be matched with liabilities to determine profit.

Correct Answer C. The matching principle requires that expenses be recorded in the same period as the related revenues, ensuring profit reflects the true cost of earning those revenues.

D. The matching principle states that revenues should be recorded when cash is received, regardless of when the related expenses are incurred.

Correct Answer

Correct Option:

The matching principle requires that expenses be recorded in the same period as the related revenues, ensuring profit reflects the true cost of earning those revenues.

About This Question

This is Neco Model Questions Vol1 2022 Financial Accounting Question 48. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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