Final answer:
Deferring an expense recognition provides a more accurate matching of revenues and expenses.
Step-by-step explanation:
Deferring an expense recognition provides a more accurate matching of revenues and expenses.
Matching is an accounting principle that requires expenses to be recorded in the same period as the revenue they help generate. By deferring expense recognition, companies ensure that the expenses are recognized in the appropriate period, resulting in more accurate financial statements.
For example, if a company incurs advertising expenses in December but the benefits of the advertising campaign will be realized in the next year, deferring the expense recognition to the next year will provide a more accurate matching of expenses with the corresponding revenues.