Which of the Following Best Describes the Expense Recognition Principle

question 127

Multiple Choice

Which of the following best describes the expense recognition principle?

• A)It requires expenses to be recorded when they are paid for.
• B)It requires expenses to be recorded when incurred to generate revenues.
• C)It requires expenses to be recorded consistent with the cash basis of accounting.
• D)It does not allow expenses to be recorded if they are incurred prior to being paiD.The expense recognition principle requires that expenses be recorded when incurred in generating revenue.

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