Which one of the following is violated when a company recognizes revenue upon the receipt of cash from a customer who has paid in advance for services?
A)Expense policy
B)Objectivity
C)Matching
D)Revenue recognition

Question

Quizplus · Accepted Answer

Revenue recognition requires that revenue should be recognized when it is earned and realized or realizable, irrespective of the time of payment. Recognizing revenue upon the receipt of cash from a customer who has paid in advance for services violates the revenue recognition principle.

Which One of the Following Is Violated When a Company