The Accounting Principle That Requires Revenue to Be Recorded When

question 54

Multiple Choice

The accounting principle that requires revenue to be recorded when earned is the:

• A) Matching principle.
• B) Revenue recognition principle.
• C) Time period assumption.
• D) Accrual reporting principle.
• E) Going-concern assumption.

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Definitions:

Functional Plans

Detailed strategies developed for specific departments or functions within an organization, such as marketing or human resources.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost compared to other producers.

Production Possibilities Frontier (PPF)

The Production Possibilities Frontier (PPF) is a curve depicting all maximum output possibilities for two goods, given a set of inputs.

Export

The selling of goods or services produced in one country to buyers in other countries.