The Expense Recognition Principle Requires

question 126

Multiple Choice

The expense recognition principle requires:

• A)that expenses should be recognized on periodic basis.
• B)that expenses should be split between Cost of Goods Sold (sometimes called Cost of Sales)and Selling Expenses.
• C)that current assets and current liabilities are stated in a certain order on the balance sheet.
• D)that costs are recognized as expenses in the same period as the revenues they generate.

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Definitions:

HR Certification Institute

An organization that offers professional certification for human resource professionals, indicating expertise and commitment to industry standards.

Professional in Human Resources

A certification for HR professionals that validates their expertise in managing people, complying with regulations, and contributing to an organization's goals.

Line Managers

Managers who are directly responsible for overseeing employees and operations within a specific department or segment of the organization.

Bottom-Line Contributions

The impact an individual or action has on the net earnings or profitability of an organization.