Financial accounting
3rd Edition
ISBN: 9780077506902
Author: David J Spieceland Wayne Thomas Don Herrmann
Publisher: Mcgraw-Hill
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Question
Chapter 3, Problem 1RQ
To determine
Discuss the major principle that describes recording revenue.
Expert Solution & Answer
Explanation of Solution
Revenue refers to the income received from the business activity or sale of product or services during the accounting period.
The principle that used for recording revenue is revenue recognition principle. Under revenue recognition principle, the revenue should be recognized in the time period when the performance obligation (sales or services) of the company is completed.
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Chapter 3 Solutions
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