Since the Revenue Recognition Principle Requires That Revenues Be Earned

question 46

True/False

Since the revenue recognition principle requires that revenues be earned, there is no such thing as unearned revenues in accounting.

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Definitions:

Correspondence Inference Theory

A psychological theory that explains how and why people draw inferences about the dispositional attributes of others based on observed behavior and its consequences.

Self-Serving Bias

Tendency to perceive our own behavior as more positive than others’ behavior.

Fundamental Attribution Error

Error that arises from attributing another person’s behavior to internal, controllable causes rather than to external, uncontrollable causes.

Stereotype

To place a person or group of persons into an inflexible, all-encompassing category.