$3$

The expense recognition principle, also called the matching principle:

$015401$

Multiple Choice

Prescribes that accounting information is based on actual cost.

Provides guidance on when a company must recognize revenue.

Prescribes that a company record the expenses it incurred to generate the revenue reported.

Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Prescribes that a company report the details behind financial statements that would impact users' decisions.