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Revenue and expense recognition principle

27/10/2021 Client: muhammad11 Deadline: 2 Day

Revenue Recognition And Expense Recognition

Under the accrual basis accounting, revenues and expenses are recognized by the following principles:

Revenue recognition: Revenue is recognized when both of the following conditions are met: Revenue is earned and Revenue is realized or realizable.
Expense recognition: Expense is recognized in the period in which related revenue is recognized (this is also known as the Matching Principle).
Respond to the following in a minimum of 150 words:

Discuss when the requirements of the revenue recognition principle are usually met. Give an example.
Discuss when the requirements of the expense recognition principle are usually met. Give an example.

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