Materially (significantly) large amounts of supplies should be recognized as an expense under which of the following approaches?
A) when purchased
B) upon use in operations
C) strictly as a function of time
D) in a systematic allocation as services of laborers are performed

Question

Quizplus · Accepted Answer

Supplies should be recognized as an expense upon use in operations, as this reflects the matching principle in accounting, where expenses are matched with the revenues they help to generate.

Materially (Significantly) Large Amounts of Supplies Should Be Recognized as an Expense