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.

---

Definitions:

Permanence

The state or quality of lasting or remaining unchanged indefinitely.

Attribution Theory

A psychological theory that examines how individuals infer the causes of their own and others' behaviors and events.

Decision Making Theory

A theory that explores how individuals make choices, considering both rational and psychological factors.

Attribution Style Hypothesis

The theory suggesting that individuals have consistent ways of explaining events in their lives, which can impact emotions, motivation, and behaviors.