The matching principle states that:
A)expenses should be recognized in the period that the related revenue is recognized.
B)after expenses have been identified in a particular accounting period in which they were incurred, revenues can be recognized.
C)each company should use the same accounting principles as other companies use.
D)for every dollar of revenue recognized, the company should recognize a corresponding dollar of expenses.

Question

Quizplus · Accepted Answer

The matching principle in accounting dictates that expenses should be recognized in the same period as the revenues they helped to generate, ensuring that financial statements accurately reflect the company's financial performance.

The Matching Principle States That