Expenses are recorded on an income statement based on
A)their payment dates.
B)the date the expenses are expected.
C)the matching principle.
D)their invoice dates.
E)the average time principle.

Question

Quizplus · Accepted Answer

The matching principle states that expenses should be recorded in the same period as the related revenue, in order to accurately reflect the cost of generating that revenue. Therefore, expenses should be recorded based on when they are incurred, not when they are paid or invoiced.

Expenses Are Recorded on an Income Statement Based on