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:

Mirror Image Rule

A common law rule that requires that the terms of the offeree’s acceptance adhere exactly to the terms of the offeror’s offer for a valid contract to be formed.

Acceptance

The action of consenting to receive or undertake something offered.

Offer

A proposal presented by one party to another as the basis for a contract, requiring acceptance to become legally binding.

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly with no modifications for a valid contract to be formed.