The expense recognition principle requires that expenses be matched with revenues.

Name: The expense recognition principle requires that expenses be matched with revenues.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The expense recognition principle, also known as the matching principle, requires that expenses should be recognized in the same period as the revenue they helped to generate. This is done to ensure that the financial statements accurately reflect the profitability and financial health of the company.

The Expense Recognition Principle Requires That Expenses Be Matched with Revenues