The accounting principle that requires revenue to be reported when earned is the
A)Matching principle.
B)Revenue recognition principle.
C)Going concern principle.
D)Cost principle.
E)Timeliness principle.

Question

Quizplus · Accepted Answer

The revenue recognition principle requires that revenue be recognized and reported when it is earned, regardless of when payment is received. This principle is important in accurately reflecting a company's financial performance in a given period.

The Accounting Principle That Requires Revenue to Be Reported When