Revenues are recognized when
A) net assets increase or decrease as a result of any company activity.
B) net assets increase or decrease as a result of primary operating activities.
C) net assets increase as a result of any company activity.
D) net assets increase as a result of primary operating activities.

Question

Quizplus · Accepted Answer

Revenues are recognized when net assets increase as a result of primary operating activities. This is in line with the revenue recognition principle, which states that revenue is recognized when earned, typically through the delivery of goods or services to customers as part of the company's main operations.

Revenues Are Recognized When