When are expenses recognized under U$.$S$.$ GAAP?

A$.$ The only situation in which expenses are recognized is when the entity's benefits are consumed in the process of producing or delivering goods or rendering services.

B$.$ An expense is recognized when the company receives the right to bill with the expectation that a customer will pay the amount billed and the expenses associated with it$.$

C$.$ Firms recognize expenses $(1)$ when the entity's benefits are consumed in the process of producing or delivering goods or rendering services and $(2)$ when an asset will experience an increased future benefit or when a liability has been reduced.

D$.$ Firms recognize expenses $(1)$ when the entity's benefits are consumed in the process of producing or delivering goods or rendering services and $(2)$ when an asset has experienced a reduced $($or eliminated$)$ future benefit or when a liability has been incurred or increased, without an associateri benefit.