For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.

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Anthony Moore · Accepted Answer

Final Answer : True, Explanation :  This is the concept of accrual accounting, where expenses are recognized when they are earned, not necessarily when they are paid. The cost of fringe benefits is earned by the employee during the period he or she worked and therefore should be recognized as an expense of that period.

For proper matching of revenues and expenses, the estimated cost of fringe benefits must be recognized as an expense of the period during which the employee earns the benefits.

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