What is the expected outcome of following the matching principle?

Following the matching principle ensures that expenses incurred in generating revenue are recorded in the same accounting period as the revenue they helped produce. This approach enhances the accuracy of financial reporting because it provides a clearer picture of an organization's financial performance during a specific period. By aligning revenues with the corresponding expenses, stakeholders can better assess the profitability of the organization, leading to more informed decision-making.

This accurate representation aids in evaluating the effectiveness of business operations and financial health, which can ultimately impact investment decisions, loan approvals, and overall business strategy. The other options do not directly relate to the core purpose of the matching principle, such as increasing total revenues, reducing expenses, or facilitating quicker cash flow, which are influenced by various other factors beyond the matching principle itself.