Marvin's Appliance Store Sold a 3-Year Service Contract on a Refrigerator

Multiple Choice

Marvin's Appliance Store sold a 3-year service contract on a refrigerator receiving the entire amount in cash at the time of the sale. Recording the revenue from the prepaid service contract over its 3-year life is an example of

A) following the objectivity assumption.
B) applying the conservatism constraint.
C) applying the realization principle.
D) applying the revenue recognition principle.