General Account Which principle dictates that a businessshould report revenue when it is earned andexpenses when they are incurred?A. Matching PrincipleB. Revenue Recognition PrincipleC. Cost PrincipleD. Accrual Principle

Concept of Accrual Principle:The accrual principle is a fundamental accounting concept that requires…

Answered: Which principle dictates that a…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 23GI

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Similar questions

Which of the following is not a criterion to recognize revenue under GAAP? A. The earnings process must be completed. B. A product or service must be provided. C. Cash must be collected. D. GAAP requires that the accrual basis accounting principle be used in the revenue recognition process.
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Which of the following is considered a constraint on useful information by Statement of Financial Accounting Concepts No. 8? a. benefits costs b. conservatism c. timeliness d. verifiability
Which of the following principles matches expenses with associated revenues in the period in which the revenues were generated? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Refer to Exhibit 9.1. Which accounts are relevant in the revenue cycle? Identify the relationships among them.
Define the terms revenue and expense. How are these terms related?
Describe the expense recognition principle (matching principle). Give specifics.
Describe the revenue recognition principle. Give specifics.
Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.
Question: Which accounting principle states that revenue should be recognized when it is earned and expenses when they are incurred? a. Matching principle b. Revenue recognition principle c. Conservatism principle d. Time period principle
FINANCIAL/GENERAL ACCOUNTING

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Which principle dictates that a business should report revenue when it is earned and expenses when they are incurred? A. Matching Principle B. Revenue Recognition Principle C. Cost Principle D. Accrual Principle