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:

Option Value

The value of an option, which includes intrinsic value and time value, reflecting the probability of the price movement of the underlying asset.

Abandonment Option

In project management and finance, the option to halt a project or investment if it becomes non-viable or unprofitable.

Improve NPV

Strategies or steps taken to increase the Net Present Value of an investment, thereby enhancing its profitability.

Lower Risk

Investments or actions that are considered to have a lower likelihood of resulting in a loss.