Answer
Revenue recognition principle.
Work Step by Step
The revenue recognition principle stipulates that revenue should be recorded during the period when it is earned (sale) rather than when the cash is received.
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 2 - Conceptual Framework for Financial Reporting - Exercises - Page 73: E2-7h
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