The accounting principle that states that revenue is recorded at the time that it is earned regardless of whether cash or another asset has been exchanged is the
A) currency principle
B) business entity principle
C) going concern principle
D) revenue recognition principle
E) historical cost principle

Question

Quizplus · Accepted Answer

The revenue recognition principle states that revenue should be recorded when it is earned, regardless of when cash or other assets are exchanged. This is a key principle in accrual accounting, which is used to better match revenues and expenses to the period in which they occur.

The Accounting Principle That States That Revenue Is Recorded at the Time