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Q. 3-6RQ

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Horngren'S Financial And Managerial Accounting
Found in: Page 157

Short Answer

Under the matching principle, when are expenses recorded?

As per the matching principle, expenses should be recorded when it is incurred, and should match with the revenues earned.

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Step by Step Solution

Accounting Principles

Accounting principles are the set of rules or guidelines, that are followed while preparing the financial statements.

Explanation 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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