The Accounting Principle That Requires Revenue to Be Recorded When

question 146

Multiple Choice

The accounting principle that requires revenue to be recorded when earned is the:

• A) Expense recognition (matching) principle.
• B) Going-concern assumption.
• C) Time period assumption.
• D) Accrual reporting principle.
• E) Revenue recognition principle.

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Definitions:

Postponement Strategy

A supply chain strategy that delays product customization until customer orders are received to reduce inventory costs and enhance customization.

Vanilla Ice Cream

A simple or basic flavor of ice cream made from cream, sugar, and vanilla extract, often used as a benchmark for comparing other flavors and qualities.

Fudge Ripple

A flavor of ice cream characterized by swirls of fudge mixed into a vanilla or chocolate base.

Cookie Dough

A blend of ingredients like flour, sugar, eggs, and butter designed to be baked into cookies, but frequently enjoyed in its raw state as well.