
The matching principle in accounting requires the matching of debits and credits.

Identify whether the given statement is true or false.
Answer to Problem 1TF
False statement.
Explanation of Solution
Matching principle: According to this principle, the expense should be recognized when it is actually incurred, doesn’t matter, payment is made or not. This principle ensures that the expenses incurred in the current period are matched against the revenues earned in the same period. Matching principle is sometimes called as expense recognition principle.
The matching principle helps in matching the revenue earned during the year with the respective expense incurred to produce the revenue.
Therefore, for the given statement “The matching principle in accounting requires the matching of debit and credits” is false.
Want to see more full solutions like this?
Chapter 5 Solutions
College Accounting, Chapters 1-27
- Please provide the answer to this general accounting question using the right approach.arrow_forwardI am looking for help with this financial accounting question using proper accounting standards.arrow_forwardI need assistance with this financial accounting problem using appropriate calculation techniques.arrow_forward
- Please provide the correct answer to this financial accounting problem using accurate calculations.arrow_forwardCan you provide the accurate answer to this financial accounting question using correct methods?arrow_forwardCan you solve this financial accounting problem with appropriate steps and explanations?arrow_forward
- Do fast answer general accounting questionarrow_forwardConsider the following information for Trent Company: Net cash provided by operating activities $1,000,000 Common stock issued as a result of a stock dividend (fair value) 100,000 Common stock issued for cash 400,000 Proceeds from sale of building 300,000 Trent Company should report a net increase in cash of:arrow_forwardPlease explain the solution to this general accounting problem with accurate principles.arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub




