Which of the following is an example of revenue or expense to be recognized in the current period's income statement?
A)Cash received from a client before the service is provided.
B)Inventory purchased for sale to customers.
C)Wages owed to employees who worked during the period.
D)Cash collected from an account receivable.

Question

Quizplus · Accepted Answer

Wages owed to employees who worked during the period are recognized as an expense in the current period's income statement, reflecting the matching principle of accounting, which matches expenses with the revenues they help generate within the same period.

Which of the Following Is an Example of Revenue or Expense