The rule that (1)requires revenue to be recognized at the time it is earned,(2)allows the inflow of assets associated with revenue to be in a form other than cash,and (3)measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the:

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The Revenue recognition principle is the rule that requires revenue to be recognized at the time it is earned, regardless of when payment is received. It allows for the inflow of assets associated with revenue to be in a form other than cash (such as accounts receivable), and requires the amount of revenue to be measured as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services. This principle guides how companies should account for their revenue and is a fundamental concept in financial reporting.

The Rule That (1)requires Revenue to Be Recognized at the Time