The Revenue Recognition Principle Is the Basis for Making Adjusting

question 147

True/False

The revenue recognition principle is the basis for making adjusting entries that pertain to unearned and accrued revenues.

---

Definitions:

Compromise Close

A sales closing technique where the seller and buyer agree on a mutually beneficial solution to overcome any remaining objections to the sale.

Vacuum-laminating Machine

Equipment used to bond layers of materials together using vacuum pressure and adhesive, commonly in manufacturing and woodworking.

Unable to Close

A situation where a salesperson fails to complete a sale transaction, often due to unresolved customer objections or other barriers.

Prospect Response

The reaction or feedback from a prospective buyer upon receiving a sales pitch or proposal.