Question

The revenue recognition principle states that revenue: Multiple choice question. should be recorded when goods or services are provided to customers at an amount expected to be received from them is recognized when expenses are paid should be recorded when payment has been received by the customer should be recorded at the end of the accounting cycle at an amount expected to be received

Answer 1

Answer:

should be recorded when goods or services are provided to customers at an amount expected to be received from them

Explanation:

The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and not when cash is received for the service rendered

For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.