The revenue reported on the Team Shirts' income statement has been earned during the accounting period.The accounting rule that applies is the ________.

Question

Quizplus · Accepted Answer

The revenue-recognition principle states that revenue should be recognized (reported on the income statement) when it is earned, regardless of when payment is received. Therefore, this principle applies to the revenue reported on the Team Shirts' income statement.

The Revenue Reported on the Team Shirts' Income Statement Has