Following the expense recognition principle,recognizing expenses along with the related revenues means to:

Question

Quizplus · Accepted Answer

The expense recognition principle requires expenses to be recognized in the same period as the related revenues. This means that expenses should be subtracted from the related revenues to compute the net income or net loss for the period. This is consistent with the matching principle, which aims to match revenues and expenses in the same period to accurately measure profit or loss. Option A is incorrect because adding expenses and revenues together would not accurately reflect the true net income or net loss. Option B is incorrect because not all expenses represent a net loss. Option C is incorrect because abandoning the matching principle conflicts with the generally accepted accounting principles.

Following the Expense Recognition Principle,recognizing Expenses Along with the Related