In relevance concepts, relevant revenues are also termed as

Solution(By Examveda Team)

In relevance concepts, relevant revenues are also termed as expected future revenues. The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period in which revenues and expenses are recognized. According to the principle, revenues are recognized when they are realized or realizable, and are earned (usually when goods are transferred or services rendered), no matter when cash is received.