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:

First-Impression Error

A first-impression error occurs when an interviewer makes a decision too early in the interview process. This error may significantly affect a decision even when subsequent information indicates the first impression may have been wrong.

Correspondent

A journalist or reporter who contributes news or articles from a remote location, often specializing in a particular field or geographic area.

Crime Beat Reporter

A journalist specializing in reporting on criminal incidents, investigations, and the justice system.

In-House

Activities, processes, or services performed within an organization by its employees rather than being outsourced to external providers.