Which principle requires accountants to match expenses against revenues?

The principle that requires accountants to match expenses against revenues is known as the Matching Principle. This foundational concept in accounting mandates that expenses should be recognized in the same period as the revenues they help to generate. By adhering to this principle, businesses can present a more accurate picture of their financial performance, ensuring that the income statement reflects the true relationship between the costs incurred in generating revenue and the revenue itself.

For instance, if a company incurs costs in producing a product, those expenses should be recorded in the same accounting period in which the revenue from the sale of that product is recognized. This alignment helps in assessing whether the activities of a business are profitable during a specific period.

Other options, while related to accounting concepts, do not specifically address the relationship between expenses and revenues as effectively as the Matching Principle does. The Income Statement Principle refers more broadly to the overall presentation of revenues and expenses in the income statement but doesn't emphasize the timing aspect. The Stable-Monetary-Unit Concept deals with the assumption that the currency used does not change over time, maintaining consistency in financial statements. Meanwhile, the Balance Sheet Principle focuses on the financial position of a company at a specific point in time, rather than on the flow of revenues and expenses.