The revenue recognition principle is the basis for making adjusting entries that pertain to unearned and accrued revenues.  True False

Adjusting entries are required to match revenues and expenses.  True False

An adjusting entry is usually not required for revenue that is:Multiple Choiceearned, recorded and paid for by the customer in one period.budgeted, paid for, and partially earned in one period but not fully earned until a later period.paid for by the customer and recorded in one period but not fully earned until a later period.earned in one period but not paid for by the customer or recorded until a later period

This contrasts with the approach to revenue in the accrual concept, which is recognized when earned, even if not yet realized

The revenue recognition principle and the expense recognition principle require that the company recognize related revenue and expense transactions in the same accounting period. Discuss why this matching concept is important and explain how the financial information would be misleading if the accountant did not follow these rules. Provide examples in your discussion to demonstrate your point(s).

Adjusting entry for accrued revenue is required when*a. cash is received for services renderedb. cash is received after the revenue is earnedc. cash is received before the revenue is earnedd. none of these