The recognition Principle Indicates That Revenue Usually Should Be Recognized

question 124

Multiple Choice

The recognition principle indicates that revenue usually should be recognized and recorded in the accounting records:

• A) When goods are sold or services are rendered to customers.
• B) When cash is collected from customers.
• C) At the end of the accounting period.
• D) Only when the revenue can be matched by an equal dollar amount of expenses.

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Definitions:

Childhood Experience

Events and interactions during early years of life that significantly influence an individual's development and personality.

Capitulating

Surrendering or giving in to someone or something, often after a struggle or conflict.

Negative Emotions

Feelings or emotional states that are unpleasant or detrimental, such as sadness, anger, or fear.

Emotionally Unstable

A term describing individuals who experience rapid, intense emotional changes that are unpredictable and can affect their behavior.