Question

Which practice is in accordance with US GAAP? A. A company values assets at their market value. B. A company recognizes expenses when they incur them. C. The monetary unit principle takes inflation into account. D. The accounting period of a business keeps changing. E. Businesses and owners are legally dependent.

Answer 1

The correct answer is :B

Answer 2

The correct answer is choice B.

Choice B, a company recognizes expenses when they incur them, is the only choice which is in accordance with US Generally Accepted Accounting Principals. All of the other options are against GAAP.