Final answer:
a. true. The revenue recognition principle requires that revenue be recorded only for the net amount that the company expects to eventually realize.
Step-by-step explanation:
The revenue recognition principle requires that revenue be recorded only for the net amount that the company expects to eventually realize. This means that revenue should not be recorded for the full amount of a sale if there are expectations of returns or allowances. The revenue recognition principle requires that revenue be recorded only for the net amount that the company expects to eventually realize.
For example, if a company sells a product for $100 but expects to give a $20 discount to the customer, the revenue should be recorded as $80. This principle ensures that revenue is reported accurately and reflects the economic reality of the transaction.