The revenue recognition principle applies to merchandisers by recognizing sales revenues when the performance obligation is satisfied.

Name: The revenue recognition principle applies to merchandisers by recognizing sales revenues when the performance obligation is satisfied.
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Quizplus · Accepted Answer

This statement is true. The revenue recognition principle requires companies, including merchandisers, to recognize revenue when goods or services have been provided to customers and performance obligations are satisfied.

The Revenue Recognition Principle Applies to Merchandisers by Recognizing Sales