Expenses Are Recognized and Matched Against Revenues on the Basis

question 80

Multiple Choice

Expenses are recognized and matched against revenues on the basis of three principles.Which of the following is not one of these principles?

• A)immediate recognition
• B)associating cash flows
• C)systematic and rational allocation
• D)associating cause and effect

---

Definitions:

Attractive Alternative

A choice that appears more appealing than others due to its advantages or potential benefits, often considered in decision-making processes.

Pure Command Economy

An economic system where all production, investment, prices, and incomes are controlled by the government.

Privately Owned

Refers to properties, businesses, or assets that are owned by individuals or private companies and not by the state or public entities.

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.