Asked by Jacob Willard on Jun 09, 2024

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Sales revenue should be recorded in accordance with the matching principle.

Sales Revenue

The income earned by a company from its sales of goods or services before any expenses are deducted.

Matching Principle

An accounting principle that requires companies to report expenses at the same time as the revenues they are related to, ensuring that financial statements accurately reflect business performance.

Recorded

Documented in official records or accounts.

  • Understand the principle of revenue recognition and its implementation in businesses involved in merchandising.
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Jennifer VallejoJun 15, 2024
Final Answer :
False
Explanation :
Sales revenue should be recorded in accordance with the revenue recognition principle, which states that revenue is recognized when it is earned and realizable, not necessarily when cash is received. The matching principle, on the other hand, relates to expenses being matched with the revenues they help to generate.