Question

The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the? ________ principle.

Answer 1

The correct answer is the matching principle.
This principle stipulates that every expense that a company makes has to match with the revenues it brought to the company within the same accounting period when both of them happened. So, basically, a company has to have a list of expenses and profits they gained in the same period.