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:

Fetuses

Refers to the late stages of development in the womb, from the end of the eighth week after conception until birth.

Vibrating Devices

Tools or equipment that produce vibrations, used for a variety of purposes, including massage and alerts.

Habituation

A decrease in response to a stimulus after repeated exposure, indicating a basic form of learning or adaptation.

Repeated Stimulation

The process of continuously or frequently exposing someone or something to a particular stimulus to induce a reaction or to study changes over time.