Expenses are recognized and matched against revenues on the basis of three principles. Which of the following is not one of these principles?
A) immediate consumption
B) associating cash flows
C) systematic and rational allocation over time
D) cause and effect

Question

Quizplus · Accepted Answer

The three principles for recognizing and matching expenses against revenues are immediate consumption, systematic and rational allocation over time, and cause and effect. Associating cash flows is not one of these principles; it relates more to the timing of cash movements rather than the recognition of expenses.

Expenses Are Recognized and Matched Against Revenues on the Basis