Practice Quiz

Forensic Accounting

Category - Specialized Forensic Knowledge

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Which of the following is NOT a basic principle of revenue recognition?
  1. Complete process
  2. Authenticated buyers
  3. Reasonable assurance in terms of collection
  4. All of the above
Explanation
Answer: B - Authenticated buyers is not a basic principle of revenue recognition. There are two basic principles related to revenue recognition. One of them relates to completeness, i.e., the earning process should be complete. The other one relates to reasonable assurance, which states that the collection should be ascertainable and reasonably assured.
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