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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