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      Question

      The matching principle in accounting

      means:
      A Matching assets with liabilities Correct Answer Incorrect Answer
      B Matching revenues with expenses in the same period Correct Answer Incorrect Answer
      C Matching cash receipts with cash payments only Correct Answer Incorrect Answer
      D Matching current assets with current liabilities Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Matching principle recognises expenses in the period in which related revenues are earned.

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