Which principle? Which principle dictates that revenue is recognized when earned and expensesare recognized when incurred?a) Cost Principleb) Matching Principlec) Accrual Basis Principled) Consistency Principle

Explanation of Accrual Basis Principle:The Accrual Basis Principle states that revenue should be…

Answered: Which principle dictates that revenue…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 7DQ: Define the terms revenue and expense. How are these terms related?

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Similar questions

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
Describe the expense recognition principle (matching principle). Give specifics.
Explain when revenue may be recognized and give an example.
Describe the revenue recognition principle. Give specifics.
As a general rule, revenue is normally recognized when it is: a) Realizable and earned b) Measurable and earned c) Measurable and received d) Realizable and measurable
The concept that states assets should be recorded at their original cost is known as the: i. Matching Principle ii. Consistency Principle iii. Cost Principle iv. Revenue Recognition Principle
Which of the following is not a pervasive expense recognition principle? a. immediate recognition b. systematic and rational allocation c. cash payment d. association of cause and effect
Which of the following best describes the current revenue recognition principle? Recognize revenue in the accounting period when the performance obligation is satisfied. Recognize revenue in the accounting period when cash is received. Recognize revenue when it is earned. Identify separate performance obligations in the contract.
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The concept that states assets should be recorded at their original cost is known as the: a) Matching Principle b) Cost Principle c) Consistency Principle d) Revenue Recognition Principle
Which of the following best represents the matching principle criteria? A. Expenses are reported in the period in which they were incurred. B. Expenses may be reported in a different period than the matching revenues. C. Revenue and expenses are matched based on when expenses are paid. D. Revenue is recognized when an order occurs and not when the actual sale is initiated.
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.

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Which principle dictates that revenue is recognized when earned and expenses are recognized when incurred? a) Cost Principle b) Matching Principle c) Accrual Basis Principle d) Consistency Principle