The recognition of cost of goods sold expense in the same period that sales revenue is recognized from the sale of merchandise is a good example of the
A)matching principle
B)full disclosure principle
C)revenue realization principle
D)historical cost principle

Question

Quizplus · Accepted Answer

The recognition of cost of goods sold expense in the same period that sales revenue is recognized from the sale of merchandise is an example of the matching principle, which states that expenses should be recognized in the same period as the revenue they helped to generate.

The Recognition of Cost of Goods Sold Expense in the Same