Question

Window Help 37% Wed 7:47 PM 0 Dsa Student Grades for Fernando: 6192-ACCT-2301-Prin of Financial Account iz Help Save& Exit Submit MC Qu. 114 Which of the following accountin... Which of the following accounting principles the revenue reported? prescribes that a company record its expenses incurred to generate Multiple Choice Expense recognition (Matchingi principle. Messurement (Cost) principle Business entity assumption bp 5 6 8 9

Answer 1

The Answer is Expense Recognition (Matching) Principle.

The matching principle directs a company to report an expense on its income statement in the period in which the related revenues are earned.

If an expense is not directly tied to revenues, the expense should be reported on the income statement in the accounting period in which it expires or is used up. If the future benefit of a cost cannot be determined, it should be charged to expense immediately