The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:
A)Revenue recognition principle.
B)Going-concern assumption.
C)Objectivity principle.
D)Business entity assumption.
E)Measurement (Cost)principle.

Question

Quizplus · Accepted Answer

The revenue recognition principle is the accounting principle that outlines the specific conditions under which revenue is recognized, or accounted for, on the income statement. This principle ensures that revenue is recognized only when it is earned and can be reliably measured.

The Question of When Revenue Should Be Recognized on the Income