The principle that (A) requires revenue to be recognized at the time it is earned, (B) allows the inflow of assets associated with revenue to be in a form other than cash,and (C) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the:
A)Going-concern principle
B)Cost principle
C)Revenue recognition principle
D)Objectivity principle
E)Business entity principle

Question

Quizplus · Accepted Answer

The revenue recognition principle requires revenue to be recognized at the time it is earned regardless of the form of payment or assets received. It also measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received. This principle helps ensure accuracy and consistency in reporting financial results.

The Principle That (A) Requires Revenue to Be Recognized at the Time