Question

The revenue recognition principle dictates that revenue be recognized _________.a. in the accounting period after it is earned. b. in which the performance obligation is satisfied. c. in which it is collected. d. before it is earned.

Answer 1

The correct answer is letter D

Explanation: Revenue recognition is done before it is earned. This facilitates the general accounting of products, and this is also a way of better control of revenue. So the correct option is the "letter d".