6. Is it necessary for an asset to be acquired when revenue is recognized? Explain your answer. 7. A friend says to you: ‘‘I just don’t get it. Assets cost money. Expenses reduce income. There must be...

6. Is it necessary for an asset to be acquired when revenue is recognized? Explain your answer.

7. A friend says to you: ‘‘I just don’t get it. Assets cost money. Expenses reduce income. There must be some relationship among assets, costs, and expenses—I’m just not sure what it is!’’ What is the relationship? Can you give an example of it?