The concept or principle that states that companies should recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for goods and services is referred to as the:

Question

Saige Daugherty

Business

24 May, 12:39

The concept or principle that states that companies should recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for goods and services is referred to as the:

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Tyrell Lutz · Answer 1

core revenue recognition principle

Explanation:

Evenue recognition us defined as recognising a revenue when the collection of cash from a sale has been made or is reasonably assured. It is recognised in the period when it occurs.

The matching principle states that expenses are incurred when obligations are incurred, and revenue are recognised when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for goods and services.