An expenditure that benefits the year in which it is made should be deducted from revenue in the same year.

Question

Quizplus · Accepted Answer

This statement is in accordance with the matching principle of accounting, which requires that expenses be recognized in the same period as the revenue they help to generate. This concept ensures that financial statements provide a clear and accurate picture of a company's performance for a given period.

An Expenditure That Benefits the Year in Which It Is