Revenue recognition principle

Revenue recognition principle,

Definition of Revenue recognition principle:

  1. Accounting rule that revenue should be recorded only when the (1) revenue generation process has been substantially completed, and (2) an exchange has taken place. It is a restatement of the old maxim: Dont count your chickens until they are hatched. See also accounting concepts.

How to use Revenue recognition principle in a sentence?

  1. I supported the new and exciting revenue recognition principle because it would allow us not to waste time on needless things.
  2. The revenue recognition principle ensured that a timely recording of the receipt of monetary assets were recorded in the optimal way.
  3. Since gift cards are a part of the revenue recognition principle , businesses cannot realize the monies received from them until they are actually depleted.

Meaning of Revenue recognition principle & Revenue recognition principle Definition