Asked by Lindsey Conrad on Jul 13, 2024
Verified
Revenue recognition follows expense recognition.
Expense Recognition
An accounting principle that dictates the conditions under which an expense is recognized and recorded in financial statements.
- Absorb the fundamental tenets of how revenue and expenses are recognized in accounting.
Verified Answer
JH
Jennifer HaddockJul 20, 2024
Final Answer :
False
Explanation :
Revenue recognition and expense recognition are guided by different principles in accounting. Revenue is recognized when it is earned and realizable, regardless of when cash is received, while expenses are recognized when they are incurred to generate revenue, following the matching principle.
Learning Objectives
- Absorb the fundamental tenets of how revenue and expenses are recognized in accounting.
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