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.

---

Definitions:

Potential Solution

A possible method or way to address, solve, or improve a specific problem or challenge.

Implementation Stage

The phase in a project or plan where strategies and ideas are put into action.

Rapid Prototyping

A group of techniques used to quickly fabricate a scale model of a physical part or assembly using three-dimensional computer-aided design (CAD) data.

Detailed Experiments

Rigorous testing and validation processes used to explore hypotheses, assess outcomes, and refine strategies or products based on empirical data.