For each of the following situations, indicate whether you think an expense should be recognized during the current period.

A. A law firm pays its employees for work they did during the period.

B. A law firm buys new office furniture that it expects to last for five years. Should the amount paid for the furniture be an expense?

C. At the end of the period, a company has earned income, and it expects to owe income tax on that income. Is there an expense in this year, or in the year when the tax is paid?

D. In a previous year, the company bought some inventory. This year, the inventory was sold. Is the cost of the inventory an expense this year, or in the prior year?

E. In a previous year, the company incurred telephone bills related to the telephones for its administrative offices. This year, it paid the bills.

Should the telephone expense be recorded in the previous year, or in the year the bill is paid?