Asked by

Hannah Davis
on Oct 28, 2024

verifed

Verified

According to the expense recognition principle,wages expense is recognized on the income statement when the wages are paid rather than when the employee provides the work.

Expense Recognition Principle

The accounting principle that dictates expenses should be recognized in the period in which they are incurred, contributing to the accurate reporting of financial results.

Wages Expense

The total cost incurred by an enterprise for the wages paid to employees, reported on the income statement.

  • Acquire knowledge on the criteria for revenue and expense recognition.
verifed

Verified Answer

BH
Brittany HollowayOct 29, 2024
Final Answer:
Get Full Answer