The Question of When Revenue Should Be Recognized on the Income

question 209

Multiple Choice

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

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

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Definitions:

Important Resource

A critical asset or input used in the production of goods or services that significantly impacts an organization's or ecosystem's functionality.

Major Hurricane

A powerful tropical cyclone with high winds and heavy rains causing significant damage and impact on areas it encounters.

Sugarcane Crop

Sugarcane crop refers to the cultivation of sugarcane, a tropical plant used primarily for the production of sugar and sweeteners, biofuel, and other byproducts.