The matching principle states that the Revenues and Expenses must recorded in the time period to which they belong. True Fals

Answer

The statement is True.

The matching principle is a fundamental concept in accounting that dictates that revenues and their related expenses must be recorded in the same accounting period. This ensures that financial statements reflect the relevant income and expenses for that specific period, providing a more accurate picture of a company's financial performance. For example, if a company earns revenue from a sale in December, the associated expenses related to that sale should also be recorded in December, even if the payment for those expenses occurs later. This principle is crucial for the accurate assessment of profitability and for aligning income with the costs incurred to generate that income.