Which Accounting Principle Requires Reporting Expenses in the Same Period

question 127

Multiple Choice

Which accounting principle requires reporting expenses in the same period as the sales they helped to produce?

• A) Materiality
• B) Going concern
• C) Matching
• D) Cost
• E) Business entity

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Definitions:

Issuing Corporation's Stock

The process by which a company offers its shares to the public for the first time or issues additional shares in the market.

Par Value

The face value of a bond or stock as stated by the issuing company, unrelated to market value.

Premium

An amount paid in excess of the nominal or face value, often in relation to insurance or bonds.

Tax Deductible

Expenses or payments that can be subtracted from gross income to reduce the amount of income subject to taxation.