If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an application of the: Select one: O a. None of the answers are correct O b. revenue recognition principle. O c. cost constraint. O d. matching principle. O e. full disclosure principle.
If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an application of the: Select one: O a. None of the answers are correct O b. revenue recognition principle. O c. cost constraint. O d. matching principle. O e. full disclosure principle.
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...
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![If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future
period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an
application of the:
Select one:
O a. None of the answers are correct
O b. revenue recognition principle.
O c. cost constraint.
O d. matching principle.
e. full disclosure principle.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7786b5d9-54d6-4bc6-9e3b-e3ac49f51c4a%2F5b596003-d6c0-4a40-bc42-70e6456cd743%2Fn4e1wto_processed.png&w=3840&q=75)
Transcribed Image Text:If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future
period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an
application of the:
Select one:
O a. None of the answers are correct
O b. revenue recognition principle.
O c. cost constraint.
O d. matching principle.
e. full disclosure principle.
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