The revenue recognition principle states that revenue is recognized when: goods or services are provided to customers the fair value of the goods or services is determined cash is received

The revenue recognition principle is a key concept in accounting that dictates when revenue should be recognized in the financial statements. Let's break down the conditions mentioned: 1. **Goods or services are provided to customers**: This is the primary condition for recognizing revenue. Revenue is recognized when the seller has delivered the goods or performed the services, indicating that the earning process is complete. 2. **The fair value of the goods or services is determined**: This condition relates to the measurement of revenue. The revenue recognized should reflect the fair value of what has been provided. However, this is not a standalone condition for recognition; it is more about how to measure the revenue once it is recognized. 3. **Cash is received**: While cash receipt is often associated with revenue recognition, it is not a requirement for recognizing revenue under the accrual basis of accounting. Revenue can be recognized before cash is received, such as in credit sales. In summary, the correct condition for recognizing revenue according to the revenue recognition principle is primarily when goods or services are provided to customers. The other two points relate to measurement and timing but do not define the recognition itself.