Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?
A) Going-concern assumption.
B) Matching principle.
C) Cost principle.
D) Business entity assumption.
E) Consideration assumption.

Question

Quizplus · Accepted Answer

The matching principle requires a company to record its expenses incurred to generate the revenue reported, in order to accurately match expenses with the revenue they helped generate. This principle ensures that the company's financial statements reflect the true costs associated with generating revenue, and helps in determining the company's profitability.

Which of the Following Accounting Principles Prescribes That a Company