Asked by Jasmine Simpson on May 19, 2024
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The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.
Revenue Recognition Principle
An accounting principle that dictates how and when revenue is accounted for and reported, emphasizing that income is recognized when earned, regardless of when cash is received.
Reporting Revenue
Reporting revenue involves the recognition and recording of income generated from the sales of goods or services in the financial statements of a corporation.
- Identify the fundamentals of revenue recognition and the matching principle as the core concepts of accrual accounting.
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Learning Objectives
- Identify the fundamentals of revenue recognition and the matching principle as the core concepts of accrual accounting.
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