Revenue should be recognized,even when collectibility is not reasonably assured.

Name: Revenue should be recognized,even when collectibility is not reasonably assured.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenue should only be recognized when it is both earned and realizable. Realizable means that collectibility is reasonably assured. Therefore, revenue should not be recognized if there is doubt about the ability to collect payment from the customer.

Revenue Should Be Recognized,even When Collectibility Is Not Reasonably Assured