Which Accounting Principle States That a Company Should "Record Revenues

question 74

Multiple Choice

Which accounting principle states that a company should "record revenues when they are earned"?

• A)Matching.
• B)Revenue recognition.
• C)Conservatism.
• D)Materiality.

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Definitions:

Product Demand

Refers to the desire and necessity for consumers to purchase a specific good or service.

Carrying Cost

Costs incurred by holding inventory, including storage, insurance, and opportunity costs, over a specific period.

Credit Sales

Credit sales are transactions where the purchase of goods or services is made on credit, with payment to be made at a later date.

Lenient Credit Terms

Lenient credit terms are more favorable conditions provided by a lender, allowing for longer repayment periods or lower interest rates to facilitate easier repayment for the borrower.