The question of when revenue should be recognized on the income statement(according to GAAP)is answered by the:
A)Business entity principle.
B)Going concern principle.
C)Revenue recognition principle.
D)Monetary unit principle.
E)Cost principle.

Question

Quizplus · Accepted Answer

The question of when revenue should be recognized on the income statement is specifically addressed by the Revenue Recognition Principle, which outlines the criteria that must be met in order for revenue to be recognized. The other principles listed are important in accounting, but not directly relevant to the recognition of revenue on the income statement.

The Question of When Revenue Should Be Recognized on the Income