Revenue is recognized in the accounting period in which the performance obligation is satisfied. This statement describes the
A) consistency characteristic.
B) expense recognition principle.
C) revenue recognition principle.
D) relevance characteristic.

Question

Quizplus · Accepted Answer

The statement describes the revenue recognition principle, which states that revenue should be recognized when a company has fulfilled its performance obligation and earned the revenue. This principle is a key element of the accrual basis of accounting.

Revenue Is Recognized in the Accounting Period in Which the Performance