Weygandt, Accounting Principles, 12e Chapter 3.2

3-2.  
Define two generally accepted accounting principles that relate to adjusting the accounts.

2.       The two generally accepted accounting principles that relate to adjusting the accounts are:
          The revenue recognition principle, which states that revenue should be recognized in the accounting period in which services are performed.
          The expense recognition principle, which states that efforts (expenses) be matched with accomplishments (revenues).


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