The Matching Concept requires:
ARevenues and expenses to be recorded at the same time they are incurred
BTotal assets to match total liabilities daily
CCash to match bank balance
DSales to match purchases in volume
Answer & Solution
Correct answer: A. Revenues and expenses to be recorded at the same time they are incurred
1. Per OCR: "the revenues and expenses must be recorded at the same time at which they are incurred."
2. Drives adjustments for prepaid expenses + accrued incomes.
3. Profit measurement requires this match.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2.1 (page 18)_