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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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