A company that is considered to be an agent in a revenue-producing transaction will recognize revenue for the net amount of consideration received from the customer.

Name: A company that is considered to be an agent in a revenue-producing transaction will recognize revenue for the net amount of consideration received from the customer.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An agent recognizes revenue for the net amount because it only earns a commission or fee from the transaction, not the gross amount billed to the customer.

A Company That Is Considered to Be an Agent in a Revenue-Producing