The matching concept is opposite to which basis of accounting?

The matching concept is opposite to which basis of accounting?

• A. A Accrual
• B. B Cash
• C. C Hybrid
• D. D Partial

Answer: (B)

The matching concept is about recording expenses in the same period as the revenues they help generate. This aligns with accrual accounting, which focuses on when economic events occur, not when cash is exchanged. The opposite basis of accounting is cash basis, which records revenues and expenses only when cash actually changes hands, so there’s no deliberate alignment of costs with the revenues they relate to. For example, under accrual you would recognize a expense in the same period as the related revenue, even if cash payment happens later. Under cash basis, the revenue is recognized when cash is received and the expense when cash is paid, which can shift timing and disrupt matching. The other options aren’t standard bases of accounting, so they don’t fit as the opposite.

The matching concept is about recording expenses in the same period as the revenues they help generate. This aligns with accrual accounting, which focuses on when economic events occur, not when cash is exchanged. The opposite basis of accounting is cash basis, which records revenues and expenses only when cash actually changes hands, so there’s no deliberate alignment of costs with the revenues they relate to. For example, under accrual you would recognize a expense in the same period as the related revenue, even if cash payment happens later. Under cash basis, the revenue is recognized when cash is received and the expense when cash is paid, which can shift timing and disrupt matching. The other options aren’t standard bases of accounting, so they don’t fit as the opposite.