In Accordance with the Expense Recognition Principle,expenses Are Recorded in the Period

question 160

Multiple Choice

In accordance with the expense recognition principle,expenses are recorded in the period when the:

• A)related revenues are recorded.
• B)cash is paid.
• C)related assets are recorded.
• D)contract and performance obligations are identified.

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Definitions:

Assets

Economic resources owned or controlled by a business, expected to provide future benefits.

Total Assets

The sum of all assets owned by a business, including both current and non-current assets.

New Building

This term refers to the accounting classification of a recently constructed building as a fixed asset, which will be subject to depreciation over its useful life.

Cash

A form of currency that can be used to exchange goods, services, or to settle debts.