Question

The generally accepted accounting principle which dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied is the :
A) expense recognition principle.
B) periodicity assumption.
C) revenue recognition principle.
D) accrued revenues principle.
E) going concern assumption

Answer 1

Answer: (C) Revenue recognition principle

Explanation:

The revenue recognition is one of the type of principle that help[s in understanding the various types of accounts based guidelines that helps in identifying the particular condition in which the revenue is basically recognize.

The importance of third principle is that it helps in ensure the actual loss or the profit Margin that maintains the financial credibility.

According to the given question, the revenue recognition principle basically accepting the various types of accounting principle that helps in satisfying the performance obligations.      

Therefore, Option (C) is correct answer.