The Expense Recognition Principle States That Expenses Should Be Matched

question 260

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 to shareholders should be matched with shareholders' investments.
• D) cash payments should be matched with cash receipts.

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Definitions:

Feces

Waste matter discharged from the bowels after food has been digested, essentially the body's solid waste.

Glomerular (Bowman's) Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood.

Nephron

Microscopic kidney unit that regulates blood composition by glomerular filtration, tubular reabsorption, and tubular secretion.

Glomerulus

A network of capillaries located within the kidney that filters blood, initiating the process of urine formation.