Which of the following is a true statement regarding expenses?

Question

Quizplus · Accepted Answer

The expense recognition principle is also known as the matching principle, which means that expenses should be recognized in the same period as the related revenue. The other options are incorrect; A) is incorrect because expenses are subtracted from revenues to compute net income, not net revenue, C) is incorrect because expenses may be paid at a later date through accounts payable, and D) is incorrect because expenses can be more than revenues, resulting in a net loss.

Which of the Following Is a True Statement Regarding Expenses