revenue recognition principle

Popular Terms
Accounting rule that revenue should be recorded only when the (1) revenue generation process has been substantially completed, and (2) an exchange has taken place. It is a restatement of the old maxim: "Don't count your chickens until they are hatched." See also accounting concepts.

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The revenue recognition principle ensured that a timely recording of the receipt of monetary assets were recorded in the optimal way.
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Since gift cards are a part of the revenue recognition principle, businesses cannot realize the monies received from them until they are actually depleted.
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I supported the new and exciting revenue recognition principle because it would allow us not to waste time on needless things.
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