Answer:
The correct answer is - Core revenue recognition principle.
Explanation:
The stipulations of an exchange transaction or other conditions related to the recovery of accounts receivable over a long period may prevent a reasonable estimate of the collectibility of such accounts. Both the term sales method and the income and cost recovery method can be used for the recognition of income and expenses, during the entire period in which collectibility is not reasonably assured.
Answer:
True
Explanation:
Retained earnings are profits that management opts not to distribute to shareholders. They are profits invested back in the business. The statement of retained earnings is the financial statement that records the retained earnings.
Calculation of retained earnings is by deducting dividends from the net profits. In the statement of retained earnings, net profits are added to the beginning balance of retained earnings and subtracting dividends declared.