Question

The revenue recognition principle dictates that revenue should be recognized in the accounting records
A at the end of the month.B in the period that income taxes are paid.C when services are performed.D only when cash is received.

Answer 1

Answer:

When services are performed

Explanation:

Revenue recognition principle states that revenues should be recognized when they are realized or realizable, and are earned even if cash has not been paid for them.

The implication of the revenue recognition principle is that revenues are recognized immediately goods are transferred or services rendered at an agreed price either cash is received immediately or the cash will be paid at a later date.

All the best.