Which of the following is not an acceptable basis for the recognition of expenses?
A) Systematic and rational allocation
B) Direct matching
C) Immediate recognition
D) Cash disbursement

Question

Quizplus · Accepted Answer

The cash disbursement is not an acceptable basis for the recognition of expenses. Just because cash has been disbursed doesn't necessarily mean that an expense has been incurred. The other options (systematic and rational allocation, direct matching, and immediate recognition) are all acceptable basis for recognizing expenses.

Which of the Following Is Not an Acceptable Basis for the Recognition