The revenue recognition principle dictates that revenue should be recognized in the accounting records:

a. when cash is received

b. in the period that income taxes are paid

c. when it is earned.

d. at the end of the month.

Question

Ayaan Simmons

Business

10 May, 14:43

The revenue recognition principle dictates that revenue should be recognized in the accounting records:

a. when cash is received

b. in the period that income taxes are paid

c. when it is earned.

d. at the end of the month.

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Answers (1)

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Sherlock · Answer 1

C. When it is earned. The revenue recognition principle is one of the basic concepts of accounting. It is the principle behind the accrual method of accounting and matching principle. Revenue recognition states that revenue is recorded when they are realized, realizable or earned. Normally, it is when the goods have already been delivered or when the service has already been rendered regardless of when the cash is received.

The revenue recognition principle dictates that revenue should be recognized in the accounting records:a. when cash is receivedb. in the period that income taxes are paidc. when it is earned.d. at the end of the month.

The revenue recognition principle dictates that revenue should be recognized in the accounting records:

a. when cash is received

b. in the period that income taxes are paid

c. when it is earned.

d. at the end of the month.