Expenses should be recognized, excluding transactions with owners, when which of the following occurs?
A) There is an increase in assets.
B) There is an increase of liabilities.
C) There is a decrease in liabilities.
D) None of the above.

Question

Quizplus · Accepted Answer

Expenses are recognized when there is an increase in liabilities, as this reflects the incurrence of obligations that result in expenses.

Expenses Should Be Recognized, Excluding Transactions with Owners, When Which