Which principle holds that all of the expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period?
A)revenue principle.
B)matching principle.
C)timing principle.
D)liability principle.

Question

Quizplus · Accepted Answer

The matching principle holds that all of the expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period. This principle ensures that companies accurately reflect their financial performance by matching expenses with the revenue generated.

Which Principle Holds That All of the Expenses Incurred in Earning