Final answer:
The matching principle requires the net cost of an operational asset to be matched with the revenue it generates over its useful life.
Step-by-step explanation:
The matching principle requires that the net cost of an operational asset be matched with the revenue it generates over its useful life. This means that the cost of acquiring and using the asset should be spread out and recorded as expenses over the period of time the asset is expected to contribute to revenue.
For example, if a company purchases a machine that is expected to last for 5 years and generate revenue during that time, the cost of the machine would be recorded as an expense over the 5-year period. This ensures that the expenses are recognized in the same period as the revenue generated by the asset.