Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts. To identify : The correct year to record the revenue. Answer: Option b: Revenue recognition principle is correct.

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Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

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Answer 2

Question

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

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Answer 3

Question

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

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Answer 4

Question

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

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Answer 5

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

Answer 6

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

Answer 7

Chapter 1, Problem 2MCQ

To determine

Revenue Recognition Principle: Revenue recognition principle means that one should record the revenue only after it is earned, merely contract does not mean that revenue is earned. For example, a trading company can record the revenue only after completing the sales process and in this process the last stage should be successfully completed that is delivery of goods to the purchaser then only the revenue will generate in books of accounts.

To identify: The correct year to record the revenue.

Answer:

Option b: Revenue recognition principle is correct.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1 - Prob. 1MCQ Ch. 1 - Prob. 2MCQ Ch. 1 - If the assets of a company increase by $100,000...Ch. 1 - Brunswick borrows $50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQ Ch. 1 - Prob. 2DQ Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - Prob. 4DQ Ch. 1 - Prob. 5DQ

Solution Summary: The author explains that revenue recognition principle is based on the fact that one should record the revenue only after it is earned.

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