Recognition of pension expense is primarily based on the:
A) cost principle.
B) revenue principle.
C) matching principle.
D) full disclosure principle.

Question

Quizplus · Accepted Answer

The recognition of pension expense is primarily based on the matching principle, which requires expenses to be recognized in the same period as the related revenues. Pension expense represents the cost of providing retirement benefits to employees, and therefore is matched against the employees' service efforts in the period in which they are earned.

Recognition of Pension Expense Is Primarily Based on The