Which of the Following Best Describes the Expense Recognition Principle

question 105

Multiple Choice

Which of the following best describes the expense recognition principle?

• A)It requires expenses to be recorded when they are paid for.
• B)It requires expenses to be recorded when incurred to generate revenues.
• C)It requires expenses to be recorded consistent with the cash basis of accounting.
• D)It does not allow expenses to be recorded if they are incurred prior to being paid.

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Definitions:

Hemichordates

A group of marine animals closely related to chordates, characterized by having a body divided into three parts: a proboscis, a collar, and a trunk.

Deuterostomes

A group of animals characterized by the development of the mouth from an opening other than the blastopore during embryonic development.

Derived Characteristics

Traits that are present in an organism but were absent in the last common ancestor of the group to which the organism belongs.

Flightless Bird

A bird that has evolved to lose the ability to fly, often due to changes in its habitat or predation pressures.