The revenue recognition principle:-
a. determines when revenue is credited to a revenue account
Revenue recognition principle dictates that revenue should be recorded when it is earned and not when cash is received.
The revenue recognition principle a. determines when revenue is credited to a revenue account b. is...
Indicate whether each of the following would be reported in the financial statements as a (a) current asset, (b) property, plant, and equipment, (c) current liability, (d) revenue, or (e) expense: 1. Truck 2. Accumulated Depreciation 3. Telephone Expense 4. Fees Earned 5. Wages Payable 6. Prepaid Insurance 7. Office Supplies 8. Dining Expense 9. Unearned Rent The revenue recognition principle a. states that revenue is not recorded until the cash is received Ob. determines when revenue is credited to...
The revenue recognition principle dictates that revenue should be recognized in the accounting records: O in the period that income taxes are paid. O when cash is received. O when the performance obligation is satisfied. O at the end of the month.
Explain the revenue recognition principle and the matching principle. Differentiate between the cash basis and the accrual basis of accounting. Explain why adjusting entries are needed and identify the major types of adjusting entries.
Under the revenue recognition principle, a good or service is considered transferred when A. all performance obligations have been specified B. the business has received cash from the customer OC. the customer obtains control of the good or service D. the transaction price has been agreed to
The revenue recognition principle requires O A. time to be divided into annual periods to measure revenue properly. O B. revenue to be recorded only after the cash is received. O C. revenue to be recorded only after the business has satisfied its performance obligation OD. expenses to be matched with revenue of the period. Click to select your answer
According to the revenue recognition principle, revenue should be recopile si On November 1, a customer purchased a $240 airine ticket from Det Kristo When Delta flies the customer to his/her destination on November Det A. Increase the Cash account for $240 and increase the Deferred rette B. Increase the Cash account for $240 and increase the fight every C. Decrease the Deferred revenue account for $240 and decrease the D. Decrease the Deferred revenue account for $240 and increase...
Which accounting principle supports reporting revenues in the priod they are earned? Select one: a. accounting period b. revenue recognition c. matching d. cash basis
1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...
Can you answer that for me and explain why? 17. A. The principal of revenue recognition in accounting refers to: Revenue should be recognized in the period payments are received. The cash basis of accounting. | Revenue is recorded when the company is assured that payment will be received in the future for services rendered. | Revenue is recognized in the period services have been performed. None of the choices are correct. E.
Zeke the Plumber follows the accrual accounting revenue recognition principle. Zeke performed services for a client on July 10, notified the client that he did the job the next day July 11th. The customer mailed the check to Jerry on July 25. Jerry received the check next day (July 26). When should Jerry show that the revenue was earned? A July 26 B July 25 C July 11 D July 10