The Accounting Principle That Requires Revenue to Be Recorded When

question 54

Multiple Choice

The accounting principle that requires revenue to be recorded when earned is the:

• A) Matching principle.
• B) Revenue recognition principle.
• C) Time period assumption.
• D) Accrual reporting principle.
• E) Going-concern assumption.

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Definitions:

Carbon Fixation

The process by which inorganic carbon (principally in the form of carbon dioxide) is converted to organic compounds by living organisms.

Calvin Cycle

A series of biochemical reactions that take place in the stroma of chloroplasts in plants, converting carbon dioxide and water into glucose using ATP and NADPH produced in the light reactions of photosynthesis.

NADPH

A coenzyme known as nicotinamide adenine dinucleotide phosphate plays a crucial role in anabolic reactions by serving as a reducing agent during biosynthetic processes.

ATP

Within cells, the molecule adenosine triphosphate is crucial for energy conveyance essential for metabolic functions.