Revenue is generally recognized when realized or realizable and earned.This statement describes the
A)consistency characteristic.
B)matching principle.
C)revenue recognition principle.
D)relevance characteristic.

Question

Quizplus · Accepted Answer

The statement describes the revenue recognition principle, which states that revenue should be recognized when it is realized or realizable (collection is reasonably assured) and earned (services or goods have been provided). This principle guides when and how revenue should be recorded in a company's financial statements.

Revenue Is Generally Recognized When Realized or Realizable and Earned