Which of the following accounting principles requires that warranty expenses must be estimated and recognised in the same period as the related sales revenue is recognised?
A)The matching principle
B)The consistency principle
C)The disclosure principle
D)The profit recognition principle

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be matched with the revenues they help to generate, so warranty expenses should be estimated and recognized in the same period as the related sales revenue.

Which of the Following Accounting Principles Requires That Warranty Expenses