Under the Expense Recognition Principle

question 67

Multiple Choice

Under the expense recognition principle:

• A) expenses are the costs of assets used up in earning revenue.
• B) expenses cannot be recognized when a liability is created in earning revenue.
• C) expenses have a future benefit to the company.
• D) expenses are recognized at the same time services are recorded.

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Definitions:

Legal Issues

Various legal challenges or problems that organizations or individuals may face, requiring understanding and adherence to laws and regulations.

Organizational Records

Documentation and information that capture an organization's operations, policies, and transactions.

Competency Inventory

A list or database of skills, abilities, and knowledge required for a particular job or set of jobs.

Performance History

A record or assessment of an individual's or entity's past achievements, success, failures, and overall performance.