Generally, expenses incurred to generate revenues should be matched to the revenues recognized in a given period.

Name: Generally, expenses incurred to generate revenues should be matched to the revenues recognized in a given period.
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Quizplus · Accepted Answer

This is the principle of accrual accounting, where expenses are recognized in the same period as the revenues they helped to generate. This ensures a more accurate representation of a company's financial performance and results in more meaningful financial statements.

Generally, Expenses Incurred to Generate Revenues Should Be Matched to the Revenues