Which of the following accounting principles requires that warranty expense must be estimated and recognized in the same period when the related sales revenue is recognized?
A) the matching principle
B) the disclosure principle
C) the revenue principle
D) the consistency principle

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as related revenues. This means that warranty expenses must be estimated and recognized in the same period when the related sales revenue is recognized.

Which of the Following Accounting Principles Requires That Warranty Expense