Which Principle Holds That All the Expenses Incurred in Earning

question 112

Multiple Choice

Which principle holds that all the expenses incurred in earning revenue should be identified with the revenue recognized and reported for the same period?

• A) Revenue principle.
• B) Matching principle.
• C) Timing principle.
• D) Liability principle.

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Definitions:

Nonionic Compound

A chemical compound that does not ionize in water, exhibiting no electric charge.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Hydrogen Bonds

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other, playing a crucial role in the structure of water and biological molecules.

Boils

Painful, pus-filled bumps on the skin resulting from the infection of hair follicles, primarily by Staphylococcus aureus bacteria.