The Revenue Principle Recognizes Revenue from the Sale of Goods

question 40

True/False

The revenue principle recognizes revenue from the sale of goods when ownership passes from the seller to the buyer. In the sale of services, revenue is recognized when the services are rendered.

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Definitions:

Cash Short

A situation that occurs when the actual cash received is less than the amount expected or recorded, often reflecting errors or theft.

Cash Over

A situation where the amount of cash on hand is more than the expected amount, indicating a discrepancy in transactions.

Auxiliary Petty Cash Record

A detailed documentation or log used to track petty cash expenses and replenishments separate from the main cash records.