The Expense Recognition Principle States That Expenses Should Be Matched

question 16

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) owner withdrawals should be matched with owner contributions.
• D) cash payments should be matched with cash receipts.

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Definitions:

Director

An individual who is responsible for guiding and overseeing the operations and strategic direction of an organization or a specific department within it.

Cast Members

A term commonly used in the entertainment industry, especially within theme parks like Disney, to refer to employees who perform roles, whether entertainment-based or operational.

Purist Approach

A methodology that emphasizes strict adherence to traditional principles or practices in a particular field, without adopting modern variations or innovations.

Pragmatic Approach

A practical, realistic method of dealing with problems or situations, based on practical rather than theoretical considerations.