The Accounting Principle That States That Revenue Is Recorded at the Time

question 189

Multiple Choice

The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the:

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

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Definitions:

Marginal Cost

The price of generating an extra unit of a good or service.

Gallons

A unit of volume for liquid measure equal to four quarts, used in both the US customary and British imperial systems.

Cereal

Grain-based food typically eaten as breakfast, made from processed grains and often fortified with vitamins and minerals.

Secondary Effect

The indirect consequences or impacts of an action or policy that may not be immediately apparent.