The economic effect of an expense is incurred when the benefit expires or is used up, not when cash is paid.

Name: The economic effect of an expense is incurred when the benefit expires or is used up, not when cash is paid.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

The economic effect of an expense is not solely based on when cash is paid, but when the benefit is received or used. This means that even if cash is paid upfront, the economic effect may not occur until later when the benefit is fully realized or used up.

The Economic Effect of an Expense Is Incurred When the Benefit