Expenses are recognized when:
A)they contribute to the production of revenue.
B)they are paid.
C)they are billed by the supplier.
D)the invoice is received.

Question

Quizplus · Accepted Answer

Expenses are recognized when they contribute to the production of revenue, following the matching principle in accounting, which states that expenses should be recorded in the same period as the revenues they help to generate.

Expenses Are Recognized When