The Expense Recognition Principle States That Expenses Should Be Matched

question 172

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 should be matched with stockholder investments.
• D)cash payments should be matched with cash receipts.

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Definitions:

Main Connective

In logic, the operator (such as AND, OR, NOT) that determines the overall value of a compound statement, linking its constituent parts together.

Atomic Statements

Expressions in logic that cannot be broken down into simpler statements and are used as the basic building blocks of logical expressions.

Main Connective

The principal operator in a compound logical expression, determining the overall outcome of the expression.

Atomic Statements

Simple statements that cannot be broken down into smaller statements without changing their meaning.