The Revenue Recognition Principle Requires That the Reporting of Revenue

question 115

True/False

The revenue recognition principle requires that the reporting of revenue be included in the period when cash for the service is received.

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Definitions:

Legislative and Executive Actions

Actions taken by the legislative body to enact laws, and by the executive branch to implement, administer, and enforce laws.

U.S. Constitution

The foundational document of the United States, outlining the structure of the government and its powers, as well as the rights of citizens.

Tenth Amendment

An amendment to the U.S. Constitution that emphasizes the federal system of government by stating powers not given to the federal government nor prohibited to the states by the Constitution are reserved for the states or the people.

Reserved Powers

Denotes powers that are not explicitly delegated to the national government by the constitution, thus remaining with the state governments.