According to International Accounting Standards,
A)income is recorded based on the matching principle.
B)income is recorded based on the realization principle.
C)costs are recorded based on the liquidity principle.
D)net income is recorded based on the realization principle.
E)depreciation is recorded as it affects the cash ﬂows of a ﬁrm.

Question

Quizplus · Accepted Answer

International Accounting Standards require income to be recorded based on the realization principle, which means that revenue is recognized when it is earned and realized or realizable, regardless of when payment is received. This principle ensures that income is recorded accurately and fairly in financial statements. The other options listed are not correct statements about International Accounting Standards.