. Apply revenue and expense recognition principles to answer each of the following questions.

• The current year has been a poor one, so the business is planning to delay the recording of some expenses until they are paid early the following year. Is this acceptable?

• A dentist performs a surgical operation and bills the patients insurance company. It may take three months to collect from the insurance company. Should the dentist record revenue now or wait until cash is collected?

• A construction company is building a highway system, and construction will take three years. How do you think it should record the revenue it earnsover the year or over three years?

• A utility bill is received on December 30 and will be paid next year. When should the company record utility expense?

• Employees earned wages of $20,000 during the current month but were not paid until the following month. Should the employer record any expenses at the end of the current month?