Revenue recognition most commonly occurs at the point of delivery of goods or services to the customer.

Question

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Revenue recognition typically occurs at the point of delivery of goods or completion of services, as this is when the customer obtains control of the product or service and the seller has fulfilled their obligation. However, there are certain situations where revenue may be recognized earlier or later, depending on the specific contract terms and accounting standards.

Revenue Recognition Most Commonly Occurs at the Point of Delivery