Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?
A) Expense recognition (Matching) principle.
B) Going-concern assumption.
C) Measurement (Cost) principle.
D) Consideration assumption.
E) Business entity assumption.

Question

Quizplus · Accepted Answer

The expense recognition principle (also known as matching principle) requires that expenses incurred in generating revenue must be recorded in the same period in which the revenue is recognized. This ensures that financial statements accurately reflect a company's financial performance for the period.

Which of the Following Accounting Principles Prescribes That a Company