The expense recognition principle states that expenses should be matched with revenues. Another way of stating the principle is to say that
A) assets should be matched with liabilities.
B) efforts should be matched with accomplishments.
C) dividends to shareholders should be matched with shareholders' investments.
D) cash payments should be matched with cash receipts.

Question

Quizplus · Accepted Answer

The expense recognition principle is also known as the matching principle, which means that efforts (expenses) should be matched with accomplishments (revenues). This principle ensures that the financial statements accurately reflect the true financial performance of the company.

The Expense Recognition Principle States That Expenses Should Be Matched