Why Do Generally Accepted Accounting Principles Require the Application of the Revenue

question 70

Multiple Choice

Why do generally accepted accounting principles require the application of the revenue recognition principle?

• A)Failure to apply the revenue recognition principle could lead to a misstatement of revenue.
• B)It is easy to apply the revenue recognition principle because revenue issues are always easy to identify and resolve.
• C)Recording revenue when cash is received is an objective application of the revenue recognition principle.
• D)Accounting software has made the revenue recognition easy to apply.

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Definitions:

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