Match the following terms with the appropriate definition.
-Aims to record expenses in the same accounting period as the revenues that are earned as a result of those expenses.
A)Accrued revenues
B)Expense recognition (matching) principle
C)Cash basis accounting
D)Depreciation
E)Accrual basis accounting
F)Interim financial statements
G)Straight-line depreciation
H)Time period assumption
I)Fiscal year

Question

Quizplus · Accepted Answer

The Expense Recognition (Matching) Principle dictates that expenses should be recognized in the same period as the revenues they help to generate, ensuring that financial statements accurately reflect the company's financial performance.

Match the Following Terms with the Appropriate Definition