Which of the following accounting principles requires that warranty expenses must be estimated and recognized in the same period as the related sales revenue is recognized?
A)the matching principle
B)the disclosure principle
C)the revenue principle
D)the consistency principle

Question

Quizplus · Accepted Answer

The matching principle requires expenses to be recognized in the same period as the related revenue is recognized. Warranty expenses are an example of a cost that should be recognized in the same period as the sale of the product, as the warranty is related to the sale.

Which of the Following Accounting Principles Requires That Warranty Expenses