Which accounting principle requires expenses to be recognized in the same accounting period as the revenues they helped generate?

Explanation

Core Concept: The Matching Principle mandates that costs incurred to generate income must be recognized in the period during which the corresponding revenue is earned under accrual accounting. Context/Distractors: Going concern assumes infinite operations, historical cost records assets at acquisition cost, and materiality deals with financial significance. Exam Tip/Key Fact: Adjusting entries for accrued and deferred items are driven directly by the matching principle.