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

1)Revenue recognition: Revenue is recognized when both of the following conditions are met:

2)Revenue is earned.

3)Revenue is realized or realizable.

4)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

1)Identify and describe when the revenue recognition principle requirements are usually met. Provide an example.

2)Identify and describe when the expense recognition principle requirements are usually met. Provide an example.