The Expense Recognition Principle, Also Called the Matching Principle

question 287

Multiple Choice

The expense recognition principle, also called the matching principle:

• A) Provides guidance on when a company must recognize revenue.
• B) Prescribes that a company report the details behind financial statements that would impact users' decisions.
• C) Prescribes that accounting information is based on actual cost.
• 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.

Learn to manage and navigate large datasets through the use of freezing panes and splitting windows.

Understand the impact of cell formatting options and how they affect data presentation.

Develop skills in what-if analysis and goal seeking for decision making based on data variables.

Understand the accounting methods used for uncollectible accounts and the reasons for their use.

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