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4. Which of the following statements about the Revenue Realization and Matching principles is NOT true? 1. An item of cost (an expenditure) must either
4. Which of the following statements about the Revenue Realization and Matching principles is NOT true?
1. | An item of cost (an expenditure) must either be recognised in the Financial Statements as an asset or an expense | |
2. | An expense can only benefit the current period whereas an expenditure can be of benefit across multiple accounting periods | |
3. | Revenue can only be recognised when it occurs in an arms-length transaction | |
4. | Revenue is recognised when the earnings process is complete |
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