Final answer:
False. Revenues do not need to be available for expenditure before they can be recognized.
Step-by-step explanation:
False
Revenues do not need to be available for expenditure before they can be recognized. This is because revenue recognition is based on the accrual accounting principle, which states that revenues should be recognized when they are earned, regardless of when the cash is received. In other words, revenues can be recognized even if the cash has not yet been received.
For example, let's say a company provides services to a customer in January but the customer does not make the payment until February. According to the accrual accounting principle, the company can recognize the revenue for the services provided in January, even though the cash will be received in February.