Firms recognize revenue, or income, under the following condition(s)

Question

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Firms recognize revenue when both the earnings process is complete and assets are received from the customer. This is referred to as the revenue recognition principle, which is a basic accounting principle. Receipt of cash is not a requirement for revenue recognition. Commencement of the earnings process is not sufficient for revenue recognition as revenue must be completely earned and assets must be received for revenue to be recognized.

Firms Recognize Revenue, or Income, Under the Following Condition(s)