The Recognition principle entails that revenues from selling goods or services are recognized in the period in which the goods are: __________ and ______________. For services the recognition for both revenues and expenses apply when these are _________________.
A) sold | delivered | performed
B) produced | sold | paid for
C) manufactured | stored | ordered
D) counted | stored | paid for

Question

Quizplus · Accepted Answer

The recognition principle states that revenues must be recognized in the period in which the goods are sold and delivered. For services, both revenues and expenses are recognized when the services are performed.

The Recognition Principle Entails That Revenues from Selling Goods or Services