Directions: Provide an argument as to why you think all revenue should be recognized at the same point or at different points. Be sure to provide details or statements to support your argument.
1. The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received.