Page 12 - CFA Lecture Day 8 Slides
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Session Unit 7:
24. Understanding Income Statements
LOS 24.e: Describe general principles of expense recognition, specific expense recognition
applications, and implications of expense recognition choices for financial analysis.
Under accrual accounting, expenses recognition is based on matching principle –but some
expenses are based treated as period costs, not matched to revenues.
Inventory Expense Recognition, p.50
tanties
