Sales should be recorded in accordance with the expense recognition principle.

Name: Sales should be recorded in accordance with the expense recognition principle.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Sales should be recorded in accordance with the revenue recognition principle, which dictates that revenue is recognized when it is earned and realizable, not necessarily when cash is received. The expense recognition principle, on the other hand, relates to matching expenses with the revenues they help to generate.

Sales Should Be Recorded in Accordance with the Expense Recognition