The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:
A) Recognition principle.
B) Cost principle.
C) Cash basis of accounting.
D) Matching principle.
E) Time period principle.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenues they helped to earn, in order to accurately reflect the true profit or loss of a business during that period.

The Broad Principle That Requires Expenses to Be Reported in the Same