Revenue recognition follows expense recognition.

Name: Revenue recognition follows expense recognition.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

Revenue recognition and expense recognition are guided by different principles in accounting. Revenue is recognized when it is earned and realizable, regardless of when cash is received, while expenses are recognized when they are incurred to generate revenue, following the matching principle.

Revenue Recognition Follows Expense Recognition