The Question of When Revenue Should Be Recognized on the Income

question 127

Multiple Choice

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

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

---

Definitions:

Negotiate Treaties

The process of formally discussing and agreeing upon treaties between states or international entities, typically involving diplomacy and compromise.

Print Money

The process by which a country's central bank creates money, typically involving the physical printing of new banknotes or the digital creation of money.

Power to Tax

The legal authority given to governmental entities to collect taxes from individuals and businesses to fund public expenses.

Interstate Commerce

Economic activity that crosses state lines, which the United States Congress has the power to regulate according to the Commerce Clause of the Constitution.