Expense recognition is tied to revenue recognition when
A) cash has been received for the revenue.
B) efforts should be matched with accomplishments.
C) when there is a direct association with the costs incurred and when the revenue is earned.
D) cash payments have been expended in the same accounting period.

Question

Quizplus · Accepted Answer

Expense recognition is tied to revenue recognition when there is a direct association with the costs incurred and when the revenue is earned. This is known as the matching principle.

Expense Recognition Is Tied to Revenue Recognition When