The Expense Recognition Principle Refers to

question 157

Multiple Choice

The expense recognition principle refers to

• A)Recognizing revenue in the period when it is earned.
• B)Matching the revenue reported on the income statement with the receivable reported on the statement of financial position.
• C)Letting expenses follow revenues.
• D)Dividing the life of the business into artificial time periods.

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Definitions:

Experienced

Having knowledge or skill in a particular field or activity as a result of participation or exposure.

Explicit Memory

The conscious, intentional recollection of factual information, previous experiences, and concepts.

Intentional Recollection

The deliberate effort to retrieve information from memory, often associated with conscious awareness.

Autobiographical Memory

A type of memory system consisting of episodes recollected from an individual's life, based on a combination of episodic (personal experiences) and semantic (general knowledge and facts) memory.