Expenses are recorded when
A) cash is paid for services rendered
B) a bill is received in advance of services rendered
C) assets are used in the process of earning revenue
D) assets are purchased

Question

Quizplus · Accepted Answer

Expenses are recorded when assets are used in the process of earning revenue, according to the matching principle of accounting. This principle states that expenses should be matched with the revenues they help to generate, regardless of when cash transactions occur.

Expenses Are Recorded When