The recording of accounts receivable is linked to the
A) Matching principle
B) Revenue recognition principle
C) Cost principle
D) Materiality principle
E) Monetary unit principle

Question

Quizplus · Accepted Answer

The revenue recognition principle requires that revenues be recorded when they are earned, not necessarily when payment is received. Accounts receivable are a result of earning revenue, and therefore recording accounts receivable is linked to the revenue recognition principle.

The Recording of Accounts Receivable Is Linked to the