As a General Rule, Revenues Should Not Be Recognized in the Accounting

question 257

True/False

As a general rule, revenues should not be recognized in the accounting records when earned, but rather when cash is received.

---

Definitions:

Political-Legal Environment

The aspect of the external environment that involves the impact of political decisions and legal regulations on an organization.

Increased Personal Accountability

This term refers to situations or environments where individuals are expected to take greater responsibility for their actions and outcomes, often in professional settings.

Alternative Dispute Resolution

A range of processes and techniques used to resolve conflicts or disputes without traditional legal proceedings, including mediation and arbitration.

Out-Of-Court Settlements

Agreements made privately between disputing parties without the need for a formal court ruling.