Due to this accounting principle I postpone the moment I reveal expenses on my goods to the moment I sell these good i.e. until the moment I am able to identify the corresponding revenue. This principle is called Select one: O a. revenue recognition principle O b. consistency principle O c. full disclosure principle O d. matching principle

Due to this accounting principle I postpone the moment I reveal expenses on my goods to the moment I sell these good i.e. until the moment I am able to identify the corresponding revenue. This principle is called Select one: O a. revenue recognition principle O b. consistency principle O c. full disclosure principle O d. matching principle

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...

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One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the customer has the right to return
The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for theaccounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods havebeen:a. dispatched b. invoiced c. delivered d. paid forGive reasons for your answer.
The practice of recording advance payments from customers as a liability is an example of applying the O Going concern assumption. O Monetary unit assumption. O Historical cost principle. Revenue recognition principle.
For sellers of goods, the revenue recognition principle generally requires that revenues be recorded when the following conditions are met: The item is manufactured When the goods are received by the buy The sales order is received ● When title and risks of ownership pass to the buyer.
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. O b. Providing manufacturer warranties. c. Selling magazine subscriptions. O d. Selling inventory.
A seller recognizes the amount of returns from right to return sales as a/an ________. Group of answer choices expense revenue asset liability
In a sales transaction, which of the following is an assertion of existence or occurrence:a. All sales transactions that occur are recordedb. Sales transactions have been recorded at the correct periodc. The sales transaction has been recorded according to the amount that has been sent and the correct amount has been invoicedd. Sales transactions that have been recorded are valid sales to customers
The contra−revenue accounts include: A. Sales Tax Payable. B. Sales Returns and Allowances. C. Sales Discount. D. Both B and C are correct.
Before revenue can be recognized, the revenue recognition principle requires the _____. A. Product to be shipped B. Cash to be transferred C. Service to be booked D. Performance obligation be fulfill
Which of the following accounts are characterized as a "contra" account? (Select ALL that apply) O Equipment O Deferred Revenue OAccumulated Depreciation O Accounts Payable O Depreciation Expense O Sales Allowances O Sales return O Allowance for Uncollectible A/R O Bad Debt Expense O Accounts Receivable O Notes Payable O Cost of Goods Sold ASUS
Under the realization principle, revenue from sale of products is recognized a. At date of delivery to the customers C. When the customers are billed b. When the inventories are readied for shipment D. Upon receipt of cash payment
Which of the following is the principle that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle