Revenue is generally recognized when performance is achieved and it is measurable and collectible.This statement describes the
A)consistency characteristic.
B)matching principle.
C)revenue recognition principle.
D)relevance characteristic.

Question

Quizplus · Accepted Answer

This statement describes the revenue recognition principle, which states that revenue should be recognized when it is earned, measurable, and collectible. The consistency characteristic refers to the application of accounting policies consistently over time, while the matching principle requires that expenses be recognized in the same period as the revenue they help to generate. The relevance characteristic requires that information be important and useful for decision-making.

Revenue Is Generally Recognized When Performance Is Achieved and It