The revenue recognition principle states that we record revenue in the period in which we collect cash. True or False?

False !

It's all about Earning The Revenue Not Collecting.

Answer is False.

FALSE.The revenue recognition principle states that we record revenues when they are earned, not when we receive the cash.

later on, when we receive the cash, the accurate entry is a reduction in account receivable.

False

IAS 18 Revenue states that revenue will be recognized when: Amount of revenue and cost can be measured reliablyEconomic benefits associated with the transaction will flow to the sellerIn case of sale of goods, risks and rewards associated with ownership are transferred and seller doesn't have continuing managerial involvement nor effective control over goods.In case of services, the stage of completion can be measured reliably at reporting date. 

TRUE

True

false because revenue is earned not collected.

The revenue is recognized when earned ....false