The Question of When Revenue Should Be Recognized on the Income

question 93

Multiple Choice

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

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

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Definitions:

If

A conditional term used to stipulate a circumstance or requirement for a particular outcome or state to occur.

Asserted

Stated confidently or forcefully as a fact or belief.

Unasserted

Not confidently or forcefully stated or expressed.

Connective

A word or phrase in logic that connects propositions, such as "and," "or," and "not."