The Accounting Principle That States That Revenue Is Recorded at the Time

question 98

Multiple Choice

The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the

• A) currency principle
• B) business entity principle
• C) going concern principle
• D) revenue recognition principle
• E) historical cost principle

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Definitions:

Ending Inventory

The amount of goods available for sale at the finis of an accounting cycle.

Perpetual LIFO Method

The perpetual LIFO (Last In, First Out) method is an accounting technique for inventory valuation where goods are assumed to be sold in the reverse order they were acquired, continuously adjusting inventory value.

Income Before Taxes

The profit a company generates before accounting for taxes, used to assess the operational efficiency of a business.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities.