Which of the Following Concepts Suggests That Expenses Should Be

question 30

Multiple Choice

Which of the following concepts suggests that expenses should be recognized in the same period as the revenues they help to generate?

• A)Accounting equation.
• B)Revenue recognition.
• C)Matching.

---

Definitions:

Rationing Mechanisms

Methods or systems used to allocate scarce resources among competing uses.

Binding Price Ceilings

Government-imposed limits on the price of goods or services that are set below the market equilibrium price, leading to shortages.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product, service, or commodity.

Gasoline Shortage

A situation where the demand for gasoline exceeds the supply available, often leading to price increases and long lines at fuel stations.