As part of accrual basis accounting, revenues and expenses are recognized by the following principles:

• Revenue recognition: Revenue is recognized when both of the following conditions are met:
• Revenue is earned.
• Revenue is realized or realizable.
• Expense recognition: Expense is recognized in the period in which related revenue is recognized. This is also known as the matching principle.

Respond to the following

• Identify and describe when the revenue recognition principlerequirements are usually met. Provide an example.
• Identify and describe when the expense recognition principle requirements are usually met. Provide an example.