In general, revenue is recognized as being earned
A) during the production process
B) upon completion of the production process
C) when cash is received
D) when goods are sold or services are rendered

Question

Quizplus · Accepted Answer

Revenue is recognized when goods are sold or services are rendered, regardless of whether payment has been received. This is known as the revenue recognition principle and is a fundamental concept in accounting. The completion of the production process or receipt of cash are not sufficient triggers for recognizing revenue.

In General, Revenue Is Recognized as Being Earned