GB 518 Course Great Wisdom / tutorialrank.com GB 518 Course Great Wisdom / tutorialrank.com | Page 25

Only by banks when a business applies for a loan

To determine how much debt a firm should pay
off

Question 10. Question :
The principle that (1) requires revenue
to be recognized at the time it is earned, (2) allows the inflow of
assets associated with revenue to be in a form other than cash and
(3) measures the amount of revenue as the cash plus the cash
equivalent value of any non-cash assets received from customers in
exchange for goods or services is called the:

Going-concern principle

Cost principle

Revenue recognition principle

Objectivity principle