Which principle holds that all of the expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period?
A) liability principle.
B) revenue principle.
C) matching principle.
D) timing principle.

Question

Quizplus · Accepted Answer

The matching principle holds that all expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period, ensuring that the expenses are properly matched with the revenue they helped generate. This principle helps to provide a more accurate and meaningful representation of a company's financial performance.

Which Principle Holds That All of the Expenses Incurred in Earning