Question

The revenue recognition principle says divide time into equal periods to measure net income or net loss properly. B. match revenues and expenses in order to compute net income. C. record revenue only after you have earned it. D. record revenue only when you receive cash.

Answer 1

C. Record revenue only after you have earned it

Step-by-step explanation:

The revenue recognition principle says record revenue only after you have earned it.

Revenue recognition principle is an accounting principle that helps to determine how and when revenue is to be recognized.

Revenue recognition principle requires that revenues can only be recognized when they are realized and earned, not when cash is received.

Revenue can be calculated by multiplying price by units of quantity demanded.

That is,

Revenue= Price × Quantity demanded