Which of the Following Is a TRUE Statement Regarding Expenses

question 208

Multiple Choice

Which of the following is a TRUE statement regarding expenses?

• A)Expenses represent future benefit to the company.
• B)The expense recognition principle recognizes expenses in the same period in which the related revenues are earned.
• C)Expenses will never result in the creation of a liability account.
• D)The critical event for recording salary expense is the payment of cash.

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Definitions:

Customer Order

A request made by a customer for a specific product or service from a business.

Mass Customization

Mass customization is a manufacturing and business strategy that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Tailoring Products

The process of customizing goods or services to meet the specific needs or preferences of individual customers or market segments.

High-Volume Scale

Operations or production methods designed to handle large quantities of products or transactions efficiently.