The Accounting Principle of Expense Recognition Is Best Demonstrated by

question 122

Multiple Choice

The accounting principle of expense recognition is best demonstrated by

• A) not recognizing any expense unless some revenue is realized.
• B) associating effort (expense) with accomplishment (revenue).
• C) recognizing prepaid rent received as revenue.
• D) establishing an Appropriation for Contingencies account.

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Definitions:

Variance

A statistic that represents the extent to which a set of numbers is spread out, calculating the average of the squared differences from the Mean.

Original Units

The units in which the data was originally measured or collected before any transformations or conversions.

Skewed

A description of a statistical distribution that is not symmetrical, indicating that data points tend to extend more to one side of the mean than the other.

Median

The middle value of a data set when it is ordered from least to greatest, separating the higher half from the lower half.