The revenue recognition principle requires
a. time to be divided into annual periods to measure revenue properly
b. revenue to be recorded only after the business has earned it
c. expenses to be matched with revenue of the period
d. revenue to be recorded only after the cash is received
Ans: b. revenue to be recorded only after the business has earned it
You might also like to view...
Jeffery Company has just completed operations for the year ended December 31, 2016. This is the second year of operations for the company. The following data have been assembled for the business
Accounts Payable $ 12,200 Office Expense $ 6,500 Accounts Receivable 14,500 Rent Expense 9,600 Cash 8,200 Retained Earnings, Jan. 1, 2016 8,300 Common Stock 9,000 Salaries Expense 36,000 Dividends 13,500 Service Revenue 84,000 Equipment 15,000 Utilities Expense 6,200 Insurance Expense 4,000 Prepare the income statement. Use a proper heading. What will be an ideal response
Constant sum scale data are sometimes treated as metric
Indicate whether the statement is true or false