The Garrison Company offers terms of net 30 days for its credit sales. It records the revenue from these sales as soon as the sales are made rather than waiting until cash is received from the customers. This is an example of the
A)consistency principle.
B)realization principle.
C)matching principle.
D)conservatism constraint.

Question

Quizplus · Accepted Answer

The realization principle states that revenue should be recorded as soon as it is earned, even if cash has not yet been received. The Garrison Company is following this principle by recording revenue from credit sales immediately.

The Garrison Company Offers Terms of Net 30 Days for Its