The revenue recognition principle guides accountants in ________.
A) ensuring only revenues received in cash are recorded
B) determining when to record expenses
C) determining when to record revenues
D) ensuring expenses are deducted from revenues

Question

Quizplus · Accepted Answer

The revenue recognition principle guides accountants in determining when to record revenues. It provides a framework for recognizing and recording an entity's revenue when it is earned and realized or realizable. This principle helps ensure that revenue is reported accurately in financial statements.

The Revenue Recognition Principle Guides Accountants in ________