Answer
Expense recognition & revenue principle
Work Step by Step
Under accrual accounting, revenue is acknowledged when it is (1) earned, (2) realized/realizable while expense is recognized when affiliated revenue is recognized.
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: E2-7j
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