The expense recognition principle requires that expenses be matched with revenues.

Name: The expense recognition principle requires that expenses be matched with revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The expense recognition principle, also known as the matching principle, states that expenses should be recognized and reported in the same period as the revenues they helped to generate. This ensures that the financial statements accurately reflect the profitability of a business during a given period.

The Expense Recognition Principle Requires That Expenses Be Matched with Revenues