Ensuring that accounting information is updated each period is the purpose of the:
A) matching principle.
B) revenue principle.
C) time-period concept.
D) expense principle

Question

Quizplus · Accepted Answer

The time-period concept requires that accounting information is updated for each period to ensure that financial statements accurately reflect the entity's financial position and performance during the period. The matching principle relates to aligning expenses with related revenue for the same period, the revenue principle guides when to recognize revenue, and the expense principle guides when to recognize expenses.

Ensuring That Accounting Information Is Updated Each Period Is the Purpose