Recording expenses in the fiscal period in which the expenses contribute to earning revenue is an application of this accounting concept.

The correct answer is Matching Expenses with Revenue.

Explanation:

The application thereof is a consequence of double entry; In the specific case of the Correspondence Principle we refer to the relationship that exists between an income and expense at the time of registering a transaction. As summarized in the following statement:

For every income there is an expense and for every expense there is an income.

The application of this principle complements the application of the accrual principle that simply refers to one of the elements (income or expense) without suggesting a direct relationship except to the final moment when they manifest as equity variations.

Examples of commonly used operating budgets are sales, production or manufacturing, labor, overhead, and administration. Once budgets are in place, companies can use them to manage activities, compare how they are earning or spending against these budgets, and prepare for future business cycles.

Explanation:

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