The principle that states revenue should be recognized when earned, regardless of when cash is received, is called the: a) Cash basis principle b) Revenue recognition principle c) Matching principle d) Accrual basis principle
The principle that states revenue should be recognized when earned, regardless of when cash is received, is called the: a) Cash basis principle b) Revenue recognition principle c) Matching principle d) Accrual basis principle
Chapter4: The Adjustment Process
Section: Chapter Questions
Problem 3MC: Revenues and expenses must be recorded in the accounting period in which they were earned or...
Related questions
Question
Transcribed Image Text:The principle that states revenue should be recognized when earned,
regardless of when cash is received, is called the:
a) Cash basis principle
b) Revenue recognition principle
c) Matching principle
d) Accrual basis principle
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT