The accounting principle that requires revenue to be reported when earned is the
A) Matching principle
B) Revenue recognition principle
C) Timeliness principle
D) Cost principle
E) Going concern principle

Question

Quizplus · Accepted Answer

The revenue recognition principle requires revenue to be reported when it is earned, regardless of when the cash is received. This principle ensures that financial statements accurately reflect the performance of a company during a given period.

The Accounting Principle That Requires Revenue to Be Reported When