Which of the following principles requires that warranty expense be recorded in the period that revenue is recorded?
A) Consistency principle
B) Matching principle
C) Revenue principle
D) Materiality concept

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded in the same period as the revenue they helped to generate. Therefore, warranty expenses should be recorded in the period that the associated revenue is recorded.

Which of the Following Principles Requires That Warranty Expense Be