Which of the Following Accounting Principles Dictates When Expenses Are

question 116

Multiple Choice

Which of the following accounting principles dictates when expenses are recognized?

• A)Revenue recognition principle
• B)Monetary unit principle
• C)Business entity principle
• D)Matching principle
• E)Full disclosure principle

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Definitions:

External Users

Individuals or groups outside of an organization who interact with its systems or consume its information.

Financial Statements

Documents that provide an overview of a business or individual's financial condition in a specific period, including balance sheets, income statements, and statements of cash flows.

Decision Making

A process of selecting the best option among multiple alternatives to achieve an objective or a solution to a problem.

Net Income

A financial term representing the profit left after all expenses, taxes, and costs have been subtracted from total revenue.