The matching principle states that . Select one: A. companies should record revenue when it has been earned B. a business's activities can be sliced into small time segments C. all expenses should be recorded when they are incurred during the period D. financial statements can be prepared for specific periods

C. all expenses should be recorded when they are incurred during the period.

Explanation: Matching principle is one of the Generally Accepted Accounting Priciples which are Revenue recognition principle,

Historical cost principle, Matching principle, Full disclosure and objectivity principle.

Matching principle informs a company to record expenses incurred on its income statement in the period revenue are earned.

The concept of matching principle helps to allign expenses incurred by a company to the revenue earned so that there would be concise measurements of company's operations. Also, there would not be distortion in the finances of the business and the overall quality of the financial statement is achieved.

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