Which of the following is one of the conditions for recognition of an expense?
A)There is a reasonable expectation that cash will be paid.
B)The expense will be recognized only when cash is paid.
C)The goods will be delivered or the services will be provided within the accounting cycle.
D)The goods or services are used to produce revenue.

Question

Quizplus · Accepted Answer

Recognition of an expense is based on the matching principle, which states that expenses should be recognized in the same period as the related revenue. Therefore, an expense should be recognized if it is used to produce revenue, regardless of whether cash has been paid or when the goods or services are delivered. The expectation of paying cash or the timing of delivery is not a primary factor in recognizing an expense.

Which of the Following Is One of the Conditions for Recognition