The expense recognition principle, also called the matching principle: Multiple Choice

Provides guidance on when a company must recognize revenue.
Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
Prescribes that accounting information is based on actual cost.
Prescribes that a company report the details behind financial statements that would impact users' decisions.
Prescribes that a company record the expenses it incurred to generate the revenue reported.

Prescribes that a company record the expenses it incurred to generate the revenue reported.

Explanation:

The matching principle is one derived from the understanding that an entity in the ordinary course of business that results in the generation of sale must have incurred some expenses.

This principle thus prescribes that a company record the expenses it incurred to generate the revenue reported in the same period ( more like matching the revenue to a recognizable cost).

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