Which of the Following Accounting Principles Prescribes That a Company

question 296

Multiple Choice

Which of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?

• A) Expense recognition (Matching) principle.
• B) Going-concern assumption.
• C) Measurement (Cost) principle.
• D) Consideration assumption.
• E) Business entity assumption.

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Definitions:

Activity Variance

The difference between the planned budget allocation for a particular activity and the actual expenditure incurred for that activity.

Meals

Meals include the food and beverages consumed predominantly for nutrition or sustenance, often categorized based on the time of day or occasion.

Activity Variances

The difference between the budgeted and actual costs associated with a specific activity, indicating whether the activity was more or less expensive than planned.

Customers Served

The number of customers or clients who have received products or services from a company within a specific period.