Final answer:
The matching concept is the principle that supports reporting revenues and related expenses in the same accounting period, a key element of accrual accounting, ensuring accurate financial performance representation.
Step-by-step explanation:
The concept that supports reporting revenues and related expenses in the same period is the matching concept. This principle dictates that expenses should be recognized in the period in which they help to generate revenues. The matching concept is a cornerstone of accrual accounting and ensures that financial statements present a company's financial performance accurately for a particular period.
The revenue recognition concept, while related, mainly deals with the conditions under which revenue can be recognized on the income statement. The adjusting principle is a broader term that includes various adjustments made to ensure that revenues and expenses are reported in the period they are earned or incurred, which includes application of the matching concept. The cash basis method does not adhere to the matching principle, as it recognizes revenues and expenses only when cash is exchanged irrespective of when the actual business event occurred.