In the 14th century, plague ravaged Europe and Asia and was called the Black Death. Plague does not respond to penicillin, but other antibiotics are effective. Sanitary measures against fleas and rodents, quarantine and extreme caution in handling infectious materials help to suppress epidemics.
1. Expense recognition. Expenses are decreases in assets (e.g., rent expenses) or increases in liabilities (e.g., accrued utility expenses) that result from operating activities undertaken to generate revenue. Expenses are recognized in accordance with the matching principle. This principle mandates that the expense or cost of doing business is recorded in the same period as the revenue that has been generated as the result of incurring that expense or cost.
Computing the Effects of Capitalizing vs. Expensing. Expenses can be expensed as they are incurred, or they can be capitalized. A company is able to capitalize the cost of acquiring a resource only if the resource provides the company with a tangible benefit for more than one operating cycle.In this regard, these expenses represent an asset for the company and are recorded on the balance sheet. Effects of Capitalization on Key Figures.The decision to capitalize or expense some items depends on management.n this regard, these expenses represent an asset for the company and are recorded on the balance sheet. Effects of Capitalization on Key Figures. The decision to capitalize or expense some items depends on management.