Which of the following is not true regarding the revenue-expense approach to defining accounting elements?
A)The revenue-expense approach defines assets and liabilities as a by-product of revenues and expenses.
B)Under the revenue-expense approach, the balance sheet is burdened with by-products of income measurement rules.
C)Deferred charges and deferred credits are ambiguous debits and credits that appear on the balance sheet under the revenue-expense approach.
D)There are very few examples of the use of the revenue-expense approach in recent accounting standards.

Question

Quizplus · Accepted Answer

This statement is true. The revenue-expense approach has been largely replaced by the asset-liability approach in recent accounting standards.

Which of the Following Is Not True Regarding the Revenue-Expense