
Revenue recognition principle:
In revenue recognition principle, the revenue is recognized for the accounting period in which, the goods are sold, or the services performed. Once the goods are sold, or services performed for a particular period, the business recognizes the revenue.
Expense recognition principle:
The expense recognition principle follows the same theory of revenue recognition principle. In expense recognition principle, the expense is recognized for the same period in which, the revenue is recognized. In other words, expenses incurred during the period to earn certain revenues are recognized.
To determine: The expenses to be deducted from the revenue.

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Chapter 4 Solutions
Financial Accounting: Tools for Business Decision Making, 8e WileyPLUS (next generation) + Loose-leaf
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