Charging an expenditure directly to an expense account is based on the assumption that the benefits of that expenditure have been used up in the current period.

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When an expenditure is charged directly to an expense account, it is considered as having been used up in the current period and no future benefits are expected from it. This assumption is the basis for the accounting principle of matching expenses with revenues in the period in which they are incurred.

Charging an Expenditure Directly to an Expense Account Is Based