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I). The generally accepted accounting principle (GAAP) that determines when revenue should be recorded in the accounting records is called the realization principle.
II). The generally accepted accounting principle (GAAP) that determines when expenses should be recorded in the accounting records is called the realization principle.
A. both are false.
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C. only I is true.
Answer: C
Explanation:
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II). The matching principle is the generally accepted accounting principle that determines when expenses should be recorded in the accounting records. The revenue earned during an accounting period is matched (offset) with the expenses incurred in generating this revenue.
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Explanation
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