The Question of When Revenue Should Be Recognized on the Income

question 241

Multiple Choice

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

• A) Revenue recognition principle.
• B) Going concern principle.
• C) Monetary unit principle.
• D) Business entity principle.
• E) Cost principle.

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Definitions:

Early Republic

The initial period of United States history following the American Revolution, characterized by the establishment and testing of the new nation's governmental systems.

Dartmouth V. Woodward

A landmark U.S. Supreme Court case in 1819 that affirmed the sanctity of contracts and contributed to the rise of corporations in America.

Corps of Discovery

The name given to the expedition led by Lewis and Clark from 1804 to 1806 by the United States to explore the newly acquired Louisiana Territory and the Pacific Northwest.

Californios

Residents of Spanish or Mexican heritage living in California before it became a part of the United States.