The Revenue Recognition Principle Dictates That Revenue Should Be Recognized

question 74

Multiple Choice

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

• A)before it is earned.
• B)after it is earned.
• C)in which the performance obligation is satisfied.
• D)in which it is collected.

---

Definitions:

Primacy Effect

The psychological phenomenon whereby the first items presented in a list are remembered more easily than those in the middle.

Recency Effect

A memory bias that occurs when the most recently presented items or experiences are more likely to be remembered than those presented earlier.

Individual's Psychology

A psychological perspective focusing on the unique experiences and motivations of an individual, often associated with Alfred Adler.