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As part of 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.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
Question 1: Identify and describe when the revenue recognition principle requirements are usually met. Provide an example.
Question 2: Identify and describe when the expense recognition principle requirements are usually met. Provide an example.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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