The recognition of cost of goods sold expense in the same period that sales revenue is recognized from the sale of merchandise is a good example of the
A) full disclosure principle
B) matching principle
C) historical cost principle
D) revenue realization principle

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenue they help generate. In the case of cost of goods sold expense, it is recognized in the same period as sales revenue from merchandise because the cost of the goods sold is directly related to generating that revenue.

The Recognition of Cost of Goods Sold Expense in the Same