The Expense Recognition Principle, Also Called the Matching Principle

Multiple Choice

The expense recognition principle, also called the matching principle:

A) Provides guidance on when a company must recognize revenue.
B) Prescribes that a company report the details behind financial statements that would impact users' decisions.
C) Prescribes that accounting information is based on actual cost.
D) Prescribes that a company record the expenses it incurred to generate the revenue reported.
E) Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.