Which of the following statements concerning the definition of expenses in the Conceptual Framework is incorrect?
A) An expense arises whenever the economic benefits in an asset are consumed or lost.
B) All expenses must be matched with their associated income in the same financial period.
C) An expense occurs simultaneously with a decrease in an asset or an increase in a liability.
D) An expense is recognised when the decrease in future economic benefits can be measured reliably.

Question

Quizplus · Accepted Answer

While expenses should be matched with their associated income in the same financial period, this is not an absolute requirement and there may be exceptions to this principle depending on the circumstances. Therefore, statement B is incorrect.

Which of the Following Statements Concerning the Definition of Expenses