6. "Revenue is recognized when sale is made or service is rendered rather than cash is received” is based on: (a) Matching Principle (b) Going Concern Assumption (c) Accrual Assumption (d) All of these
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Answer:
(c) Accrual Assumption
Explanation:
This principle states that profit is realized when goods are transferred to the buyer. Furthermore, revenue should be recognized when goods are sold or services are rendered, whether cash is received or not.
The realization principle of accounting is one of the pillars of modern accounting that provides a clear answer to this question. At the same time, the realization principle also gave birth to the accrual system of accounting.
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Answer:
c part accurual
Explanation:
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