The Question of When Revenue Should Be Recognized on the Income

question 93

Multiple Choice

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

• A) Business entity assumption.
• B) Objectivity principle.
• C) Going-concern assumption.
• D) Revenue recognition principle.
• E) Measurement (Cost) principle.

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Definitions:

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Business Plan

A formal document that outlines a company's goals, strategies, target market, and financial forecasts.

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The collective physical presentation or look of a person, item, or place, based on all observable characteristics.

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