Final answer:
Expense-recognition in accrual-basis accounting is the recording of expenses when they are incurred, known as the matching principle, which aligns expenses with the revenues they generate.
Step-by-step explanation:
What is Expense-Recognition in Accrual-Basis of Accounting?
The principle of expense-recognition under the accrual basis of accounting states that expenses should be recorded when they are incurred, not necessarily when cash is paid. This matches expenses to the revenues they helped to generate, which is key to providing a more accurate picture of a company's financial performance during a specific period. This principle is also known as the matching principle.