office equipment on credit for $75,000. The effects of this
transaction include:
Assets increase by $75,000 and expenses
increase by $75,000
Assets increase by $75,000 and expenses
decrease by $75,000
Liabilities increase by $75,000 and
expenses decrease by $75,000
Assets decrease by $75,000 and expenses
decrease by $75,000
Assets increase by $75,000 and liabilities
increase by $75,000
Question 12. 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