The Expense Recognition (Matching)principle indicates
A)where expenses should be presented on the income statement.
B)how expenses should be split between the income statement and the balance sheet
C)the ordering of current assets and current liabilities on the balance sheet.
D)when costs are recognized as expenses on the income statement.

Question

Quizplus · Accepted Answer

The Expense Recognition (Matching) principle indicates when costs are recognized as expenses on the income statement, meaning it matches expenses to the period in which they were incurred, even if cash was not paid out during that period.

The Expense Recognition (Matching)principle Indicates