According to Generally Accepted Accounting Principles, costs are:
A) Matched with the Inventory level.
B) Recorded when paid.
C) Matched with revenues.
D) Matched with production levels.
E) Expensed as management desires.

Question

Quizplus · Accepted Answer

Costs are matched with revenues according to the matching principle, a core component of accrual accounting and GAAP. This principle dictates that expenses should be recorded in the same period as the revenues they helped to generate, ensuring that financial statements accurately reflect a company's financial performance.

According to Generally Accepted Accounting Principles, Costs Are