Revenue is recognized within the income statement during the period in which cash is collected.

Name: Revenue is recognized within the income statement during the period in which cash is collected.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Revenue is recognized when it is earned, regardless of when the cash is collected. The matching principle requires expenses to be recognized in the same period as the revenue they helped to generate. Therefore, revenue can be recognized before or after cash is collected.

Revenue Is Recognized Within the Income Statement During the Period