Ask Question
BusinessBusiness
20 February, 05:59

The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:Select one:a. Revenue recognition principle. b. Going-concern principle. c. Objectivity principle. d. Business entity principle. e. Cost principle.

+1
Answers (1)
  1. 20 February, 06:16
    0
    a. Revenue recognition principle

    Explanation:

    Revenue recognition principle clearly states the circumstances and conditions under which and when the revenue earned shall be recognized in income statement as per accrual basis.

    As a common rule, it is established that when the risk and reward of the product is transferred to the customer, then the revenue shall be recognized, and revenue from monetary transactions like, interest and dividend are based on different rule.

    Therefore, correct option is

    a. Revenue Recognition Principle
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:Select one:a. Revenue ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In 3-5 sentences, describe how good e-mail work habits increase workplace efficiency and productivity.
Answers (1)
When interacting with a small number of rival firms, a manager uses a?
Answers (1)
Ken and traci are two woodworkers who both make tables and chairs. in one month, ken can make 3 tables or 18 chairs, whereas traci can make 8 tables or 24 chairs. given this, we know that the opportunity cost of 1 table is
Answers (1)
Jacob just joined the firm of gordon & towns llc. prior to beginning his first group audit assignment, jacob asks to meet with his mentor, isaac. he asks isaac how making judgments in an audit team setting differs from running an audit oneself.
Answers (1)
What is the main purpose of evaluating the career choices that you have researched?
Answers (1)
New Questions in Business
When do you start paying taxes
Answers (2)
The following data pertains to Greenwold Manufacturing. Total assets at January 1, 20X9, were $290,000; at December 31, 20X9, total assets were $334,000.
Answers (1)
Select the correct answer. Which form of relativism states that people rely on their own standards of right and wrong when making a decision? A. naïve relativism B. role relativism C. social relativism D. cultural relativism E. habitual relativism
Answers (1)
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 3,700 Variable costs per unit: Direct materials $ 132 Direct labor $ 93 Variable manufacturing overhead
Answers (1)
Consolidated financial statements are being prepared for Behemoth Corporation and its two wholly-owned subsidiaries that have intercompany loans of $50,000 and intercompany profits of $100,000.
Answers (1)
Home » Business » The question of when revenue should be recognized on the income statement (according to GAAP) is addressed by the:Select one:a. Revenue recognition principle. b. Going-concern principle. c. Objectivity principle. d. Business entity principle. e.
Sign Up Forgot Password?