The accounting principle that requires revenue to be reported when earned is the:
A)Matching principle
B)Revenue recognition principle
C)Time period principle
D)Accrual reporting principle
E)Going-concern principle

Question

Quizplus · Accepted Answer

The revenue recognition principle requires that revenue be reported when it is earned, regardless of when payment is received. This principle ensures that revenue is accurately reflected in the financial statements and matches with the expenses incurred to generate that revenue.

The Accounting Principle That Requires Revenue to Be Reported When