Which of the following concepts suggests that expenses should be recognized in the same period as the revenues they help to generate?
A)Accounting equation.
B)Revenue recognition.
C)Matching.

Question

Quizplus · Accepted Answer

The concept of matching suggests that expenses should be recognized in the same period as the revenues they help to generate. This is necessary to accurately determine the profitability of the company in a specific period. The accounting equation involves the relationship between assets, liabilities, and equity, while revenue recognition deals with the timing of recognizing revenue in financial statements.

Which of the Following Concepts Suggests That Expenses Should Be