12.

Which of the following is a component of the revenue recognition principle?

a.

Production is complete and there is an active market for the product.

b.

Cash is received and the amount is material.

c.

Recognition occurs when the performance obligation is satisfied.

d.

Cash is realized or realizable and production is complete.

13.

Recognition of expense related to amortization of an intangible asset illustrates the accounting principle of __________________.

a.

historical cost

b.

revenue recognition

c.

full disclosure

d.

expense recognition