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    Question

    Which accounting principle states that revenue should be

    recognized in the accounting period in which it is earned?
    A Matching Principle Correct Answer Incorrect Answer
    B Cost Principle Correct Answer Incorrect Answer
    C Revenue Recognition Principle Correct Answer Incorrect Answer
    D Full Disclosure Principle Correct Answer Incorrect Answer

    Solution

    This principle states that revenue is recognized when it is earned, regardless of when cash is received. It ensures that financial statements accurately reflect the period's performance.

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