The Accounting Principle That Ensures That All Expenses Are Recorded

question 52

Multiple Choice

The accounting principle that ensures that all expenses are recorded when they are incurred during the period, and compares those expenses against the revenues of the period is called the ________ principle.

• A)comparison
• B)accrual
• C)matching
• D)revenue recognition

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Definitions:

Bearing Them

Taking responsibility for or dealing with something, often implying a burden or hardship that must be endured.

Transferable

Characteristic of an item, right, or obligation, that allows it to be passed from one party to another, often involving legal documentation.

Negotiable

Capable of being bought, sold, or transferred to another party, often used to describe financial instruments.

Pay To

A directive on checks or drafts indicating to whom the payment is to be made.