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slamgirl [31]
3 years ago
9

The revenue recognition principle requires A. time to be divided into annual periods to measure revenue properly. B. expenses to

be matched with revenue of the period. C. revenue to be recorded only after the cash is received. D. revenue to be recorded only after the business has satisfied its performance obligation.
Social Studies
1 answer:
Nonamiya [84]3 years ago
3 0

Answer:

The answer is D, Revenue to be recorded only after the business has satisfied its performance obligation

Explanation:

The revenue recognition principle requires revenue to be recorded only after the business has satisfied its performance obligation. Revenue is considered earned when the service has been provided or when the goods are delivered. revenues are recognized when realized and earned, not necessarily when received. It means that goods or services have been received but payment for the service or product is expected later.

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