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

Question

Quizplus · Accepted Answer

The revenue recognition principle states that revenue should be recognized when it is earned, regardless of when payment is received. This principle is important in accurately reflecting a company's financial performance in a given period.

The Accounting Principle That Requires Revenue to Be Recorded When