The accounting principle that requires revenue to be recorded when earned is the:
A)Expense recognition (matching)principle.
B)Revenue recognition principle.
C)Time period assumption.
D)Accrual reporting principle.
E)Going-concern assumption.

Question

Quizplus · Accepted Answer

The revenue recognition principle states that revenue should be recognized (recorded) when it is earned. This means that revenue should be recorded when goods are shipped or services are provided, not necessarily when cash is received.

The Accounting Principle That Requires Revenue to Be Recorded When