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) Revenue recognition principle
B) Cost principle
C) Cash basis of accounting
D) Matching principle
E) Timeliness principle

Question

Quizplus · Accepted Answer

The matching principle requires that expenses should be reported in the same period as the revenues that were earned as a result of the expenses. This principle ensures that the financial statements accurately reflect the profitability of a business by matching the expenses to the revenues they generate.

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