Which of the following is the accounting principle that governs the timing of revenue recognition?

Question

Quizplus · Accepted Answer

The recognition principle, also known as the revenue recognition principle, is an accounting principle that governs the timing of revenue recognition. It states that revenue should be recognized when it is earned and realized or realizable, and when the risks and rewards of ownership have been transferred to the buyer. This principle is important for determining when revenue should be recorded in the financial statements.

Which of the Following Is the Accounting Principle That Governs