Expenses Are Reported on the Income Statement When the Related

question 30

Multiple Choice

Expenses are reported on the income statement when the related revenue is recognized.This is the ________ principle.

• A)historical-cost
• B)full-disclosure
• C)matching
• D)revenue recognition

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Definitions:

Government Expenditures

The total amount of money the government spends, including spending on goods, services, and transfer payments.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and resulting in significant military and civilian casualties.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States and affecting many countries.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce over a short period, generally at existing price levels.