The revenue recognition principle dictates that all types of incomes should be recorded or recognized when

A Cash is received
B At the end of accounting period
C When they are earned
D When interest is paid

Correct Answer: When they are earned

The revenue recognition principle dictates that all types of incomes should be recorded or recognized when they are earned. The revenue recognition principle, a combination of accrual accounting and the matching principle, stipulates that revenues are recognized when realized and earned, not necessarily when received.
Bissoy MCQ
#Commerce #Accounting

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