The Recording of Expenses in the Same Time Period as the Related

question 128

Multiple Choice

The recording of expenses in the same time period as the related revenues are recognized is known as

• A)cost recovery.
• B)realization.
• C)matching.
• D)recognition.
• E)period costs.

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Definitions:

Fixed Asset

Long-term tangible property that a firm owns and uses in its operations to generate income, such as buildings and machinery.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, after which it is considered to be no longer useful for business operations.

Residual Value

The estimated worth or salvage value of an asset at the end of its useful life.

Net Income

The total profit of a company after all expenses, including taxes and operational expenses, have been deducted from total revenue; essentially, it's the bottom line of the income statement.