Week 2_ Dis 1

Under the accrual basis accounting, revenues and expenses are recognized by the following principles: 

• Revenue recognition: Revenue is recognized when both of the following conditions are met: Revenue is earned and Revenue is realized or realizable. 
• Expense recognition: Expense is recognized in the period in which related revenue is recognized (this is also known as the Matching Principle). 

Respond to the following in a minimum of 175 words: 

• Discuss when the requirements of the revenue recognition principle are usually met. Give an example.
• Discuss when the requirements of the expense recognition principle are usually met. Give an example.

Reply to at least 2 of your classmates. Be constructive and professional in your responses.

1 response (175 words) 

2 replies to classmates ( 150 words each)