Revenue should be recognized when it is earned,and not before.

Question

Quizplus · Accepted Answer

This statement is true according to the revenue recognition principle in accounting, which states that revenue should only be recognized when it is earned and realized or realizable, and not before. This means that revenue should be recognized in the period in which goods or services are provided to customers, and payment is expected or received. The principle helps ensure that financial statements accurately reflect the company's performance and reduces the risk of overstating revenue.

Revenue Should Be Recognized When It Is Earned,and Not Before