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Question: 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.
Information related to above question is enclosed below:
Attachment:- Replies.rar
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