Asked by Samantha Adams on Jun 16, 2024
Verified
The revenue recognition principle states that revenue should be recorded in the same period as the cash is received.
Revenue Recognition Principle
A concept of accounting that states that revenues are recorded when earned, which is when the services have been performed or products have been delivered to customers.
Recorded
The action of entering financial transactions into the accounting records of a business.
- Acknowledge the central principles of revenue recognition and the matching principle in the context of accrual accounting.
Verified Answer
CJ
Charles JamesJun 17, 2024
Final Answer :
False
Explanation :
The revenue recognition principle states that revenue should be recognized when it is earned, regardless of when cash is received. This means that revenue should be recorded when goods or services are delivered or rendered, regardless of whether payment has been received.
Learning Objectives
- Acknowledge the central principles of revenue recognition and the matching principle in the context of accrual accounting.
Related questions
An Adjusting Entry Would Adjust Revenue So It Is Reported ...
The Matching Principle Supports Matching Expenses with the Related Revenues
Revenues and Expenses Should Be Recorded in the Same Period ...
An Adjusting Entry Would Adjust an Expense Account So the ...
The Revenue Recognition Principle Requires That the Reporting of Revenue ...