The Rule That (1) Requires Revenue to Be Recognized at the Time

question 213

Multiple Choice

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures revenue as the amount of cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the

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

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Definitions:

Comparison Effect

The phenomenon where an individual's evaluation of their own abilities, achievements, or conditions is influenced by comparisons with others.

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Informational Social Influence

"The influence other people have on us because we want to be right."

Principle Of Proximity

A principle in psychology that suggests objects or shapes that are close to one another appear to form groups.