Asked by
antonie rendon
on Nov 15, 2024
Verified
Expense recognition is tied to changes in assets and liabilities.
Expense Recognition
The accounting principle that expenses should be recorded in the period in which they are incurred, regardless of when the cash is paid.
Assets
Resources owned by a business.
Liabilities
Financial obligations or debts a company owes to others, which must be settled over time by transfer of economic benefits.
- Understand the fundamental principles of revenue and expense recognition in accounting.
Verified Answer
SM
Learning Objectives
- Understand the fundamental principles of revenue and expense recognition in accounting.