When a grocery store sells groceries and receives payment in the form of a cheque, the revenue principle would state that the revenue should not be recognized until the cheque clears the bank.

Question

Quizplus · Accepted Answer

The revenue principle states that revenue should be recognized when it is earned and realizable, regardless of when cash is received. Therefore, when the groceries are sold, the revenue is recognized at that point, not when the cheque clears the bank.

When a Grocery Store Sells Groceries and Receives Payment in the Form