Which of the Following Best Describes the Expense Recognition Principle

Multiple Choice

Which of the following best describes the expense recognition principle?

A) It requires expenses to be recorded when they are paid for.
B) It requires expenses to be recorded when incurred to generate revenues.
C) It requires expenses to be recorded consistent with the cash basis of accounting.
D) It does not allow expenses to be recorded if they are incurred prior to being paiD.The expense recognition principle requires that expenses be recorded when incurred in generating revenue.