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    dawit's Avatar
    dawit Posts: 1, Reputation: 1
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    #1

    Jun 10, 2009, 01:44 AM
    Financial Accounting
    What is an expense recognition in brief!

    Kind Rgrs.
    Dawit
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
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    #2

    Jun 10, 2009, 02:04 AM

    Expense recognition is the recording of expense in the income statement of an entity.
    Expenses are recognized when the company incurred it. For example at the end of the month you should record payroll expense for the employees because there salaries become due. Another example, at the beginning for the year you pay the amount of rent in advance. Accordingly, you should not record an expense at the date of payment instead you record the expense each month for the service received
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