The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:
A)Recognition principle.
B)Cost principle.
C)Cash basis of accounting.
D)Expense recognition (Matching)principle.
E)Time period principle.

Question

Quizplus · Accepted Answer

The expense recognition principle, also known as the matching principle, states that expenses should be recognized and reported in the same period as the revenue they helped to generate. This principle is important for ensuring that financial statements accurately reflect the company's performance during a given period, and is a fundamental concept in accrual accounting.

The Broad Principle That Requires Expenses to Be Reported in the Same