Which accounting principle requires recording expenses in the same period as the revenues they help generate?
Medium
Create a free account to see more questions and build your own quiz.
Get StartedWhich accounting principle requires recording expenses in the same period as the revenues they help generate?
Options:
- Revenue recognition principle
- Matching principle
- Conservatism principle
- Historical cost principle
Correct answer: Matching principle
Explanation: The matching principle, a core rule of accrual accounting under GAAP, requires expenses be recognized in the same period as related revenues to present an accurate measurement of period profit.
Created . Updated .