The Realistic Marketing Company provides advertising services to an investment company in year 1 nbs...........

General Accounting Principles Concepts of Accounting

The Realistic Marketing Company provides advertising services to an investment company in year 1 but receives advertising fee in year 2. The Realistic Marketing Company recognizes this revenue in year 1. This action of Realistic Marketing Company is justified by:

going concern concept

economic entity concept

revenue recognition principle

business entity concept

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Explanation:

revenue recognition principle
Revenue recognition is a generally accepted accounting principle (GAAP) that identifies the specific conditions in which revenue is recognized and determines how to account for it. Typically, revenue is recognized when a critical event has occurred, and the dollar amount is easily measurable to the company.