The Expense Recognition Principle States That Expenses Should Be Matched

question 260

Multiple Choice

The expense recognition principle states that expenses should be matched with revenues. Another way of stating the principle is to say that

• A) assets should be matched with liabilities.
• B) efforts should be matched with accomplishments.
• C) dividends to shareholders should be matched with shareholders' investments.
• D) cash payments should be matched with cash receipts.

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Definitions:

Implicit Favorite

An often unrecognized bias towards a person or option that influences decision-making and judgment without conscious awareness.

Alternatives Sequentially

The process of considering and evaluating different options one after another in a systematic order.

Mental Models

Internal representations of the external world that individuals use to understand and interact with their environment.

Emerging Problems

New or upcoming challenges that are not yet fully understood or recognized.