Which of the following is not an expense recognition approach recognized by the FASB as an expense recognition principle to properly match expenses against revenues?
A)immediate recognition
B)systematic and rational allocation
C)cash payment
D)association of cause and effect

Question

Quizplus · Accepted Answer

The FASB recognizes immediate recognition, systematic and rational allocation, and association of cause and effect as expense recognition approaches. However, cash payment is not recognized as an expense recognition principle because it is not always directly related to the recognition of revenue or the matching of expenses to revenue.

Which of the Following Is Not an Expense Recognition Approach