Question

Which accounting standard deals with revenue recognition?

Answer 1

Answer:

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Revenue recognition is a generally accepted accounting principle (GAAP) that stipulates how and when revenue is to be recognized. The revenue recognition principle using accrual accounting requires that revenues are recognized when realized and earned–not when cash is received

Answer 2

$\huge{ \underline{ \overline{ \mid{ \mathfrak{ \purple{ \: \: ANSWER \: \: } \mid}}}}}$

$\: \: \: \: \: \: \: \: \: \: \: \: \: \: \texttt{The Revenue Recognition concept helps in } \\ \texttt{ascertaining the amount and time of recognition } \\ \texttt{the revenues from the ordinary business } \\ \texttt{activities. In simple words, revenue recognition } \\ \texttt{concept tells us the procedure of determining } \\ \texttt{the income and expense for incorporation in } \\ \texttt{profit and loss account.}$

$\: \: \: \: \: \: \texttt{ \blue{The Revenue Recognition Principle is also known }} \\ \texttt{ \blue{as Revenue Realisation Principle. Accouting}} \\ \texttt{ \blue{Standard 9 deals with the basis for recognition} } \\ \texttt{ \blue{of revenue arising from ordinary activities of an }} \\ \texttt{ \blue{enterprise in the profit and loss account.}}$