A fundamental principle in accounting is that expenses are recognized in the period in which those costs provide benefit to the business in the form of increased revenue. What name is given to this important principle? Fiscal principle Revenue recognition principle Measurement principle Matching principle Sorting principle On May 1, Clark Company paid cash for rent. This payment of the cash was recorded as an asset, Prepaid Rent. Which debit or credit is correctly included in the ADJUSTING journal entry necessary on December 31 with respect to this prepaid rent? DEBIT to Cash CREDIT to Rent Expense CREDIT to Cash DEBIT to Rent Expense On October 1 of Year 1, Della Company made a cash loan to another company. The interest rate on the loan is 13%. No cash payments will be collected on the loan until September 30 of Year 2. Which debit or credit is correctly included in the ADJUSTING journal entry necessary on Della's books (the LENDER) on December 31 of Year 1 with respect to this loan? DEBIT to Interest Expense DEBIT to Interest Revenue CREDIT to Interest Expense CREDIT to Interest Revenue CREDIT to Cash