The Accounting Principle That Ensures All Expenses Are Recorded During

question 79

Multiple Choice

The accounting principle that ensures all expenses are recorded during the period when they are incurred and offsets those expenses against the revenues of the period is called the ________ principle.

• A) comparison
• B) accrual
• C) matching
• D) revenue recognition

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Definitions:

Homeostasis

The process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Drive

An internal motivational state created by physiological or psychological needs that drives an individual to engage in behaviors to satisfy those needs.

Alertness

A state of active attention by the mind to the environment or stimuli, often marked by a heightened sense of awareness.

Drive-Reduction Theory

A theory in psychology that posits the reduction of physiological needs is a primary motivator for behavior.