The rule that (1)requires revenue to be recognized when goods or services are provided to the customer and (2)at the amount expected to be received from the customer is called the:
A)Going-concern assumption.
B)Measurement (Cost)principle.
C)Revenue recognition principle.
D)Objectivity principle.
E)Business entity assumption.

Question

Quizplus · Accepted Answer

The revenue recognition principle specifies when revenue is to be recognized and at what amount. It requires revenue to be recognized when goods or services are provided to the customer and at the amount expected to be received from the customer. This is a fundamental accounting principle that is important for the accurate reporting of a company's financial performance. Choices A, B, D, and E are all other important accounting principles but are not directly related to revenue recognition.

The Rule That (1)requires Revenue to Be Recognized When Goods