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    Question

    Which accounting principle states that revenue should be

    recognized when it is earned, regardless of when cash is received?
    A Accrual Principle Correct Answer Incorrect Answer
    B Matching Principle Correct Answer Incorrect Answer
    C Conservatism Principle Correct Answer Incorrect Answer
    D Consistency Principle Correct Answer Incorrect Answer

    Solution

    Explanation: •The Accrual Principle recognizes revenue when earned and expenses when incurred, regardless of cash flow. •It ensures that financial statements reflect the actual financial position.

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