The revenue principle recognizes revenue from the sale of goods when ownership passes from the seller to the buyer.In the sale of services,revenue is recognized when the services are completed.

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The revenue principle recognizes revenue from the sale of goods when ownership passes from the seller to the buyer. In the sale of services, revenue is recognized when the services are completed. These are generally accepted accounting principles that provide guidance on when to recognize revenue.

The Revenue Principle Recognizes Revenue from the Sale of Goods