Identify and write out the revenue recognition principle as explained in the chapter

Question: Refer to Apple’s financial statements in Appendix A to answer the following.

1. Identify and write out the revenue recognition principle as explained in the chapter

Expert Solution

Step 1: Definition of revenue

Revenue is the amount that is received from selling goods or selling services.

Step 2: Revenue recognition principle

According to the revenue recognition principle, revenue is only recorded when goods and services are provided to customers, and it is recorded at the expected amount received from the customer

Answer:

Revenue is recognised only when goods are delivered to customers

Sahil Dangi answered 2 years ago

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