Recognition of pension expense is primarily based on the:

Question

Quizplus · Accepted Answer

The matching principle in accounting dictates that expenses should be recognized in the period in which they help to generate revenues. Pension expense is recognized based on the services provided by employees during the current period, aligning with the matching principle as it matches the pension costs (expenses) to the periods in which the employees are contributing to the company's revenue generation.

Recognition of Pension Expense Is Primarily Based on The