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)Monetary unit principle.
B)Going concern principle.
C)Business entity principle.
D)Cost principle.
E)Revenue recognition principle.

Question

Quizplus · Accepted Answer

The principle that revenue is recognized at the time it is earned is known as the revenue recognition principle. This principle requires that revenue should be recorded when the seller has completed their obligations to the buyer, regardless of whether payment has been received.

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