Revenue may not be recorded unless cash, or the promise of a future payment of cash, is included in the transaction.

Name: Revenue may not be recorded unless cash, or the promise of a future payment of cash, is included in the transaction.
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Question

Quizplus · Accepted Answer

Revenue recognition principles allow companies to record revenue when it is earned and realizable, regardless of whether cash has been received. This is known as the accrual basis of accounting.

Revenue May Not Be Recorded Unless Cash, or the Promise