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    Question

    The revenue recognition principle dictates that all

    types of incomes should be recorded or recognized when
    A Cash is received Correct Answer Incorrect Answer
    B At the end of accounting period Correct Answer Incorrect Answer
    C When they are earned Correct Answer Incorrect Answer
    D When interest is paid Correct Answer Incorrect Answer

    Solution

    The revenue recognition principle using accrual accounting requires that revenues are recognized when  realized and earned –not when cash is received.

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