Based on the revenue recognition principle, earnings may not be reported until the earnings cycle is completed.

Name: Based on the revenue recognition principle, earnings may not be reported until the earnings cycle is completed.
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Quizplus · Accepted Answer

According to the revenue recognition principle, revenue should be recognized and reported when it is earned, not necessarily when payment is received. This means earnings should not be reported until the earnings cycle is completed.

Based on the Revenue Recognition Principle, Earnings May Not Be