The Principle That (1)requires Revenue to Be Recognized at the Time

question 177

Multiple Choice

The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount of revenue as the cash plus the cash equivalent value of any non-cash assets received from customers in exchange for goods or services is called the:

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

---

Definitions:

Elastic

Describes a situation in which the quantity demanded or supplied of a good or service changes significantly in response to a change in price.

Total Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Elastic Demand

Elastic demand refers to a situation where the quantity demanded of a product changes significantly in response to changes in its price.

Consultant

A professional who provides expert advice in a particular area or industry.