Which of the following correctly applies the revenue recognition principle?
A)Recording revenue in December 2009 for units manufactured but not yet sold to customers.
B)Recording cash received in advance from customers as revenue when the product is not yet shipped.
C)Not recording interest earned in 2009 until the cash is received in 2010.
D)Recording revenue in December 2009 for units sold but not yet paid for in full.

Question

Quizplus · Accepted Answer

The revenue recognition principle requires that revenue be recorded once goods have been sold.

Which of the Following Correctly Applies the Revenue Recognition Principle