The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the ________ principle.
A) comparison
B) accrual
C) matching
D) revenue recognition

Question

Quizplus · Accepted Answer

The matching principle in accounting states that expenses should be recorded during the period in which they are incurred, regardless of when the transfer of cash occurs. This principle is used to ensure that revenues and the expenses that brought them are recognized in the same accounting period, allowing for a more accurate representation of a company's financial performance.

The Accounting Principle That Ensures All Expenses Are Recorded During