University of Phoenix Revenue Recognition and Expense Recognition Discussion Under the accrual basis accounting, revenues and expenses are recognized by th

University of Phoenix Revenue Recognition and Expense Recognition Discussion Under the 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 and 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).