Homework Answers
OPTION - C.
Revenue recognition principle requires that revenues to be recorded only after the business has satisfied its performance obligation.
As per matching principle, the revenue should be recorded only when the revenue has been earned but not when cash has been received.
Expenses is not recorded to match the revenues , but to match the matching principle.
There will be no time to divide the portion of revenues to particular period.
If you have any doubts please comment on the answer.
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