Which accounting principle requires reporting expenses in the same period as the sales they helped to produce?
A) Materiality
B) Going concern
C) Matching
D) Cost
E) Business entity

Question

Quizplus · Accepted Answer

The Matching Principle requires reporting expenses in the same period as the sales they helped to produce. This ensures that the income statement provides an accurate reflection of the company's profitability for a specific period. Materiality refers to the importance of an item or event to financial statement users, Going Concern relates to the assumption that the company will continue operating in the future, Cost refers to the value of assets measured by the amount paid for them, and Business Entity refers to the separation of personal and business finances.

Which Accounting Principle Requires Reporting Expenses in the Same Period