The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.

Name: The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

The revenue recognition principle states that revenue should be recognized when it is earned, which is when the performance obligation is satisfied, regardless of when the payment is received.

The Revenue Recognition Principle Dictates That Revenue Be Recognized in the Accounting