Why is the revenue recognition principle needed


Response to the following questions:

1. What work do tax accounting professionals perform in addition to preparing tax returns?

2. What does the concept of objectivity imply for information reported in financial statements? Why?

3. A business reports its own office stationery on the balance sheet at its $400 cost, although it cannot be sold for more than $10 as scrap paper. Which accounting principle and/or assumption justifies this treatment?

4. Why is the revenue recognition principle needed? What does it demand?

 

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Financial Accounting: Why is the revenue recognition principle needed
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