Revenue recognition issues are studied because
A)there is both an income statement and balance sheet impact
B)gross revenues must be accurate
C)estimates should not compromise the quality of reported net income
D)it is important to properly state expenses incurred each operating period

Question

Quizplus · Accepted Answer

Revenue recognition affects both the income statement and balance sheet, as it determines when revenue is recorded and impacts reported earnings and financial position.

Revenue Recognition Issues Are Studied Because