The expense recognition principle, also called the matching principle:
A. Provides guidance on when a company must recognize revenue.
B. Prescribes that accounting information is based on actual cost.
C. Prescribes that a company record the expenses it incurred to generate the revenue reported.
D. Prescribes that a company report the details behind financial statements that would impact users' decisions.
E. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
Answer: C
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