Question

The revenue principle says to record revenue when it has been ___ ( A. collected B....

The revenue principle says to record revenue when it has been ___ ( A. collected B. earned C. recorded) regardless of when____ (A. cash is collected B. revenue is earned C. sold inventory is delivered) Therefore, the amount of revenue reported is what company____ ( A. collected B. earned C. paid)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The revenue principle says to record revenue when it has been “earned “ regardless of when “cash is collected “. Therefore, the amount of revenue reported is what company “earned “

- The revenue principle states that revenue should be recorded by the enterprises when it is realizable and when it has been earned. The companies shouldn’t wait for the collection of revenue.

- The Company or an enterprise should record the revenue when the business earned the revenue.

- As per the Accrual basis of system of accounting, revenue should be recorded immediately even though which is not being received.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Revenue is recognized when: A. A seller collect cash from a customer B. It has been...
Revenue is recognized when: A. A seller collect cash from a customer B. It has been earned and is realized or realizable C. A company has satisfied its performance obligation to the customer D. A company bills the customer for the goods that have been delivered or the services performed
Service revenue collected at $32,000. We estimated that 40% of this amount has been collected in...
Service revenue collected at $32,000. We estimated that 40% of this amount has been collected in advance had been earned by the end of the year. Make a general journal entry.
The revenue recognition principle: A. States that the recording of revenue should be based on reliable...
The revenue recognition principle: A. States that the recording of revenue should be based on reliable and verifiable evidence. B. Only requires that sales revenue must be earned before it is recorded on the income statement. C. Only requires that sales revenue must be realized or realizable before it is recorded on the income statement. D. States that sales revenue should be recorded when services are performed or goods are sold. E. None of the above
13. Unearned revenue has: A) been earned but the cash has not been received. B) not...
13. Unearned revenue has: A) been earned but the cash has not been received. B) not been earned nor has the cash been received. C) been earned and the cash has been received. D) not been earned but the cash has been received.
1. Under the cash basis of accounting, expense recognition generally does not follow revenue recognition. True...
1. Under the cash basis of accounting, expense recognition generally does not follow revenue recognition. True or False? 2. Accrued revenues are: A. earned and recorded as liabilities before they are received. B. received and recorded as liabilities before they are earned. C. revenues that have not yet been received but have been earned and have been recorded for the first time by an adjusting entry. D. earned and already received and recorded. 3. Revenue must be recognized when (or...
8a. When should a shipping company recognize revenue from its delivery service? a. On the date...
8a. When should a shipping company recognize revenue from its delivery service? a. On the date the customer places a order. b. On the date the customer’s packages are delivered. c. On the date the invoice is mailed to the customer. d. On the date the customer's payment is received. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8B. When is revenue from the sale of merchandise normally recognized? a. On the date the sale is made. b. On the date the customer pays for the merchandise....
Which of the following is a correct statement regarding the Cash Shortage account? A) The account...
Which of the following is a correct statement regarding the Cash Shortage account? A) The account normally has a credit balance. B) If the recorded cash exceeds the cash counted, a shortage exists. C) It is reported as a miscellaneous revenue. D) It is reported on the balance sheet. Inventory reports the: A) cost of goods available for sale. B) cost of merchandise purchased and sold. C) cost of goods that have been delivered to customers. D) selling price times...
Which of the following best describes the modified accrual approach used to record interest income earned...
Which of the following best describes the modified accrual approach used to record interest income earned by individual taxpayers from an investment​ contract? A. Interest income is recorded when received unless it was reported in a previous period. B. Interest​ income, regardless of whether the interest is received or​ receivable, is reported on each anniversary date of the investment contract unless it was reported in a previous period. C. Interest​ income, regardless of whether the interest is received or​ receivable,...
ENC Corp. collected $90,000 from customers in 2015, of which $50,000 was from revenue earned on...
ENC Corp. collected $90,000 from customers in 2015, of which $50,000 was from revenue earned on account in 2014. In addition, ENC earned $30,000 of revenue in 2015 which will not be collected until 2016. In 2015, ENC paid $70,000 for expenses. Of this amount paid, $20,000 was for expenses incurred on account in 2014. In addition, ENC also incurred $10,000 expenses in 2015, which will not be paid until 2016. Based on the above information, what is ENC’s 2015...
For each of these transactions, events, or facts, record the necessary journal entry. a. Received an...
For each of these transactions, events, or facts, record the necessary journal entry. a. Received an $6,000 advance to provide services in the future b. Provided services that were paid for in a), above c. Paid a $3,000 two-year insurance policy in advance d. Accrued $5,000 rent expense to be paid next month e. Recorded $4,000 depreciation on plant assets f. Purchased $2,000 supplies with cash g. Sold $9,000 of inventory for $11,000 on account h. Recognized the expiration of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT