The recording of expenses in the same time period as the related revenues are recognized is known as
A)cost recovery.
B)realization.
C)matching.
D)recognition.
E)period costs.

Question

Quizplus · Accepted Answer

This concept is known as the matching principle, which requires that expenses be recognized in the same period as the related revenues. This ensures that financial statements accurately reflect the income and expenses incurred to generate that income. Options A, B, D, and E are not relevant to this concept.

The Recording of Expenses in the Same Time Period as the Related