The Accounting Principle That Requires Revenue to Be Reported When

question 27

Multiple Choice

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

• A)Matching principle
• B)Revenue recognition principle
• C)Time period principle
• D)Accrual reporting principle
• E)Going-concern principle

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Definitions:

Ordinal Scale

A ranking scale used to measure variable where the order of values is significant, but the difference between values is not uniform.

Rank Order

A method of arranging data points based on their value, from highest to lowest or vice versa.

Measurement

The process or the result of determining the size, length, or amount of something, usually according to a set of standard units.

Nominal Scale

A classification system where numerical or non-numerical data are categorized without a natural order or ranking.