When performance is substantially complete, revenue is said to be:
A)recognized.
B)earned.
C)realized.
D)realizable.

Question

Quizplus · Accepted Answer

Revenue is said to be earned when the performance is substantially complete and the seller is entitled to receive payment from the buyer. This means that the seller has fulfilled their obligations under the sales contract and has provided the goods or services to the buyer. The revenue can now be recognized in the financial statements. Realized and realizable refer to the actual receipt of cash, which may occur before or after revenue is earned. Therefore, the best choice is B.

When Performance Is Substantially Complete, Revenue Is Said to Be