The Expense Recognition Principle Refers to

question 49

Multiple Choice

The expense recognition principle refers to

• A) recognizing revenue in the period when it is earned.
• B) matching the revenue reported on the income statement with the receivable reported on the statement of financial position.
• C) letting expenses follow revenues.
• D) dividing the life of the business into artificial time periods.

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Definitions:

Inbreeding

In a professional context, the practice of repeatedly selecting internal candidates for vacancies, which can limit diversity and fresh ideas.

Recruiting Process Outsourcing

The practice of outsourcing an organization’s recruiting function to an outside firm

Core Functions

Fundamental activities or duties that are central to the purpose or operation of an organization or job position.

Small Businesses

Enterprises with a small number of employees and relatively low volume of sales, typically privately owned and operated.