As part of accrual basis accounting, revenues and expenses are recognized by the following principles: 1)Revenue recognition: Revenue is recognized when both of the following conditions are met: 2)Revenue is earned

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As part of accrual basis accounting, revenues and expenses are recognized by the following principles:

1)Revenue recognition: Revenue is recognized when both of the following conditions are met:

2)Revenue is earned.

3)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

• Identify and describe when the revenue recognition principle requirements are usually met. Provide an example.
• Identify and describe when the expense recognition principle requirements are usually met. Provide an example.