Which of the following is not an accurate representation concerning revenue recognition?
A) Revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers.
B) Revenue from services rendered is recognized when cash is received or when services have been performed.
C) Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used.
D) Revenue from disposing of assets other than products is recognized at the date of sale.

Question

Quizplus · Accepted Answer

Revenue from services rendered is not recognized when cash is received but rather when services have been performed and the revenue can be reasonably estimated and collectibility is reasonably assured. This is known as the accrual method of revenue recognition.

Which of the Following Is Not an Accurate Representation Concerning