recording of cost of goods sold along with sales revenue is an example of the matching principle.

Question

Quizplus · Accepted Answer

The matching principle in accounting dictates that expenses should be recorded in the same period as the revenues they helped generate. Recording the cost of goods sold (COGS) along with sales revenue adheres to this principle by matching the expense of the goods sold with the revenue earned from their sale.

Recording of Cost of Goods Sold Along with Sales Revenue