The Expense Recognition Principle,also Called the Matching Principle

question 85

Multiple Choice

The expense recognition principle,also called the matching principle:

• A)Prescribes that accounting information is based on actual cost.
• B)Provides guidance on when a company must recognize revenue.
• C)Prescribes that a company report the details behind financial statements that would impact users' decisions.
• D)Prescribes that a company record the expenses it incurred to generate the revenue reported.
• E)Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

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Definitions:

Connective

In logic, a word or phrase that connects clauses or sentences, such as "and," "or," "if," and "then."

Asserting

The act of stating something confidently and forcefully as a fact.

Connectives

Logical operators that join or modify statements and propositions in logic, such as "and", "or", "if...then".

Propositions

Declarations or propositions that convey an assessment or viewpoint, capable of being either correct or incorrect.