Using certain standardized and generally accepted principles, the accountant prepares financial statements that recognize revenue at the point of sale and expenses when incurred.

Question

Quizplus · Accepted Answer

This statement is true. The generally accepted accounting principles (GAAP) require revenue to be recognized at the point of sale and expenses to be recognized when they are incurred, regardless of when payment is received or made. This ensures that financial statements accurately reflect a company's financial performance and position.

Using Certain Standardized and Generally Accepted Principles, the Accountant Prepares