The revenue principle is the basis for recording revenues―both when to record revenue and the amount of revenue to record.

Question

Quizplus · Accepted Answer

The revenue principle provides guidance on when and how to record revenue in accounting. It states that revenue should be recognized when earned, regardless of when payment is received, and the amount of revenue should be based on the fair value of the goods or services provided.

The Revenue Principle Is the Basis for Recording Revenues―both When