Which of the following accounting principles best describes the rationale for reporting a liability for earned but unused compensated absences?

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the related revenue. Reporting a liability for earned but unused compensated absences ensures that the expense is recognized in the period in which the employee earned the benefit, even if they take the time off at a later date.

Which of the Following Accounting Principles Best Describes the Rationale