The revenue/expense approach emphasizes:
A)Recognition of revenues (typically applying the realization principle).
B)Recognition of expenses (typically applying the matching principle).
C)The income statement.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The revenue/expense approach emphasizes both the recognition of revenues (applying the realization principle) and the recognition of expenses (applying the matching principle) in order to accurately reflect the income statement. Therefore, option D, "All of the above are correct," is the best answer.

The Revenue/expense Approach Emphasizes