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.

---

Definitions:

Probability Correct

A measure of accuracy in predictions or decisions, indicating the likelihood of a correct outcome or answer.

General Knowledge

General knowledge entails a broad range of facts, information, and understanding across various subjects and areas, typically accumulated over time through education and experience.

Anchoring Phenomenon

A concept in psychology where initial exposure to a number or value serves as a reference point and influences subsequent judgments.

Subsequent Estimates

Revisions or new calculations made after initial estimates, often based on additional data or changes in a project or situation.