Final answer:
The matching principle in business is what establishes a causal relationship between the revenues and expenses that occur within the same accounting period.
Step-by-step explanation:
The principle that establishes a causal relationship between revenues and expenses of the same period is known as the matching principle. This fundamental concept in accrual accounting mandates that companies report expenses at the same time as the revenues they are related to. Revenues and the associated costs are recorded in the same accounting period so that accurate profit can be calculated for that period.
While the question refers to a principle related to taxes, it's important to clarify that the matching principle is not directly related to taxation principles such as the benefit principle taxation or the ability to pay principle. The matching principle is more closely associated with financial reporting and accounting practices than with the principles governing taxation.