Revenue is properly recognized:
A)When the customer makes an order.
B)Only if the transaction creates an account receivable.
C)At the end of the accounting period.
D)Upon completion of the sale or when services have been performed.
E)When cash from a sale is received.

Question

Quizplus · Accepted Answer

Revenue should be recognized when goods have been delivered or services have been performed, regardless of whether payment has been received or not. This method of recognition is called the accrual basis of accounting and is in accordance with Generally Accepted Accounting Principles (GAAP).

Revenue Is Properly Recognized