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Setting expenses against the revenues they helped generate follows the expense recognition or:
AMarketing principle
BMeasuring principle
CModelling principle
DMatching principle
Answer & Solution
Correct answer: D. Matching principle
1. An expense and its revenue belong in the same period.
2. Otherwise profit for the period is distorted.
3. That rule is the matching principle.
_Source: OpenStax Principles of Financial Accounting, Chapter 4, The Adjustment Process._
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