Revenue Recognition Principle The revenue recognition principle states that, all the revenues of the business should be recognized, and recorded in books of accounts in the period in which the goods are delivered or services performed irrespective of the cash being exchanged. To explain: The period in which M’s law firm should recognize the revenue.

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Chapter 4, Problem 3Q

To determine

Revenue Recognition Principle

The revenue recognition principle states that, all the revenues of the business should be recognized, and recorded in books of accounts in the period in which the goods are delivered or services performed irrespective of the cash being exchanged.

To explain: The period in which M’s law firm should recognize the revenue.

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