Question

when should an expense be recognized
a)In the period when cheque is paid by bank
b)All the time when prepayment is made
c) in the period in which it occurs regardless when paid
d)it depends upon company policy​

Answer 1

Answer:

in the period in which it occurs regardless when paid

is the correct answer

i hope you this answer will help you i am

Answer 2

Answer:

The accounting method the business uses determines when an expense is recognized. If the business uses cash basis accounting, an expense is recognized when the business pays for a good or service. Under the accrual system, an expense is recognized once it is incurred.

The matching principle, part of accrual accounting, requires that expenses be recognized when obligations are (1) incurred (usually when goods are transferred or services rendered), and (2) that they offset recognized revenues, which were generated from those expenses.

Matching principle

Matching principle is the accounting principle that requires that the expenses incurred during a period be recorded in the same period in which the related revenues are earned. This principle recognizes that businesses must incur ex

penses to earn revenues.