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

Question

Quizplus · Accepted Answer

The matching principle is a fundamental principle of accounting that requires expenses to be recognized in the same period as the revenues that were earned as a result of the expenses. This principle ensures that financial statements provide accurate and timely information about a company's operating results and financial position.

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