The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of those expenses is the:
A)Recognition principle
B)Cost principle
C)Cash basis of accounting
D)Matching principle
E)Time period principle

Question

Quizplus · Accepted Answer

The matching principle requires expenses to be reported in the same period as the revenues that were earned as a result of those expenses. This principle ensures that financial statements reflect an accurate picture of a company's performance during a given period.

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