The Broad Principle That Requires Expenses to Be Reported in the Same

question 23

Multiple Choice

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

• A)Recognition principle.
• B)Cost principle.
• C)Cash basis of accounting.
• D)Expense recognition (Matching)principle.
• E)Time period principle.

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Definitions:

Arbitrage

The search for deals on production factors across geographic boundaries.

Semiconductor Manufacturer

A company involved in the production of semiconductors, crucial components used in electronic devices to control electrical current.

Germanium

A chemical element with the symbol Ge and atomic number 32, used as a semiconductor in electronics.

Developing Nations

Countries with a low level of material well-being and economic development.