Question

Making adjustments to general ledger accounts is an application of the Matching Expenses with Revenue accounting concept.

A. TrueB. False

Answer 1

A. True

Step-by-step explanation:

This two principles i.e matching principle and the revenue recognition principle are interrelated to each other

The matching principle is that the principle in which the expenses of a particular period and the revenues incurred of a particular year should be matched.

Whereas the revenue recognition principle stated that whenever the revenue is earned it should be recorded whether cash is received or not

So for recording the adjusting entries, these two principles are required