The Revenue Recognition Principle Dictates That Revenue Should Be Recognized

question 115

Multiple Choice

The revenue recognition principle dictates that revenue should be recognized in the accounting records

• A)when cash is received.
• B)when the performance obligation is satisfied.
• C)at the end of the month.
• D)in the period that income taxes are paid.

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Definitions:

Disciplined

Showing a controlled form of behavior or way of working, often achieved through training or practice.

Extended Family

An extended family network that encompasses not just the immediate family members like parents and children but also includes grandparents, aunts, uncles, and various other related individuals.

Matrilineal

Children trace their family descent through their mother’s line, and property is passed on to female heirs.

Surrogate Fathers

Men who take on the role of a father figure in the life of a child who is not biologically theirs.