Question

Matching is:
Multiple Choice:
1. A valuation method.
2. A result of recognizing revenues and expenses that arise from the same transaction.
3. A cash basis reporting principle.
4. An asset classification procedure.

Answer 1

Answer:

2. A result of recognizing revenues and expenses that arise from the same transaction.

Explanation:

Matching is a concept in accounting which favors the accrual accounting over cash basis of accounting.

It is a concept in which the cost incurred during the course of carrying out some activities that generate revenue is match to the revenue generated.

Hence Matching is a result of recognizing revenues and expenses that arise from the same transaction.