Following the Expense Recognition Principle,recognizing Expenses Along with the Related

question 1

Multiple Choice

Following the expense recognition principle,recognizing expenses along with the related revenues means to:

• A)add expenses and revenues together to compute net income or net loss.
• B)add all the expenses paid during the period and call it a net loss.
• C)abandon the matching principle.
• D)subtract expenses from the related revenues to compute net income or net loss.

---

Definitions:

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash within a period.

Year 2

A reference to the second year of operation, study, or observation, the specifics of which depend on the context.

Current Ratio

An indicator of how well a company can fulfill its short-term financial obligations within a year, calculated by the division of current assets by current liabilities.

Year 2

A reference to the second year of a company's operations, project timeframe, or any specific period's second year.