Following the Expense Recognition Principle,to Recognize Expenses Along with the Related

question 42

Multiple Choice

Following the expense recognition principle,to recognize expenses along with the related revenues,means to:

• A)add expenses and revenues together to compute net income or net loss.
• B)recognize the expense of a period against the cash revenues of another period.
• C)abandon the matching principle.
• D)subtract expenses from the related revenues to compute net income or net loss.

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Definitions:

Raw Materials

Basic materials or substances used in the production or manufacturing of goods.

Finished Products

Items or goods that have completed the manufacturing or production process and are ready for sale or distribution.

Exchange Process

Activity in which two or more parties give something of value to each other to satisfy perceived needs.

Time Utility

Availability of a good or service when customers want to purchase it.