The expense recognition principle requires:

Question

Quizplus · Accepted Answer

The expense recognition principle states that expenses should be recognized (recorded) in the same period as the related revenues are earned. This principle is also known as the matching principle because it matches expenses with the revenues they generate. This approach provides a more accurate picture of a company's financial performance and helps avoid distortions in financial reporting. Therefore, choice A is the correct answer.

The Expense Recognition Principle Requires