Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 29)
What is the purpose of the 'Revenue Recognition' principle?
To determine when expenses are recognized.
To determine when to record revenue in the accounting system.
To match expenses with revenue.
To calculate the cost of goods sold.
Explanation
The revenue recognition principle establishes guidelines for when to recognize revenue in the financial statements.
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