Asked by
Oscar Martinez-Trujillo
on Nov 14, 2024
Verified
The revenue recognition principle dictates that revenue be recognized in the accounting period in which cash is received.
Revenue Recognition Principle
An accounting guideline stating that revenue should be reported when it is earned and realizable, regardless of when the cash is received.
Accounting Period
A specific duration of time, such as a month, quarter, or year, over which financial activities are recorded and reported.
Cash Received
The amount of money taken in by a business during a particular period, including transactions in cash and equivalents.
- Familiarize yourself with the core principles of income and expense recognition and their implications for financial statements.
Verified Answer
OR
Learning Objectives
- Familiarize yourself with the core principles of income and expense recognition and their implications for financial statements.