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The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

User Pgras
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1 Answer

1 vote

Answer:

a. Revenue recognition principle

Step-by-step explanation:

The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting

It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

User Natie
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