A company puts all of their sales in a given month in their income statement for that month, as revenues, even though some of those sales were credit sales. Of which accounting principle is this an example?
A) Recognition
B) Materiality
C) Conservatism
D) Matching

Question

Quizplus · Accepted Answer

This is an example of the recognition principle, which states that revenues should be recognized (recorded in the books) when they are earned, even if payment is not received at the time of sale.

A Company Puts All of Their Sales in a Given