According to the recognition criteria established for revenue, revenue is normally recognized
A)during production
B)at the completion of production
C)at the point of sale
D)when the cash is received from the customer

Question

Quizplus · Accepted Answer

Revenue is generally recognized at the point of sale, when the customer takes ownership and control of the goods or services being sold. This is in line with the revenue recognition principle, which states that revenue should be recognized when it is earned and realized or realizable. Therefore, revenue should not be recognized during production, at the completion of production, or when cash is received from the customer, as these events do not necessarily represent the point at which the customer takes ownership and control of the goods or services.

According to the Recognition Criteria Established for Revenue, Revenue Is