188. Describe the three important guidelines for revenue recognition. The three important guidelines for revenue recognition include: (1) Revenue is recognized when earned. (2) Assets received from...

188. Describe the three important guidelines for revenue recognition.

The three important guidelines for revenue recognition include: (1) Revenue is recognized when earned. (2) Assets received from selling products and services do not need to be in cash. (3) Revenue recognized is measured by cash received plus the cash equivalent of other assets received.

189. Identify the three basic forms of business organizations.

190. How does the objectivity principle support ethical behavior?

191. Why should assets be recorded at historical cost?

Assets should be recorded at historical cost to provide users with reliable and objective information regarding completed business transactions.

192. Identify the two main groups involved in establishing generally accepted accounting principles in the United States.