Which of the following terms refers to the formal recording and reporting of revenues in financial statements?
A) full disclosure
B) revenue recognition
C) compliance
D) ethical practice
E) materiality

Question

Quizplus · Accepted Answer

B)Revenue recognition is the formal recording and reporting of revenues at the appropriate time; although a firm earns revenues continuously as it makes sales, earnings are not reported until the earnings cycle is completed.

Which of the Following Terms Refers to the Formal Recording