The Rule That (1)requires Revenue to Be Recognized at the Time

question 193

Multiple Choice

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash,and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services,is called the:

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

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Definitions:

House

A structure serving as a dwelling for one or more persons, especially for a family.

True Lease

A lease agreement that qualifies as a genuine lease under applicable law, allowing the lessor to retain ownership and tax benefits of the leased asset.

Boarding House

A residence where individuals can rent rooms, often with shared facilities, typically including at least one meal a day.

Lease Expired

Marks the termination of a rental agreement or contract upon reaching its end date, after which the lessee must vacate the property unless a renewal agreement is made.