Merchandisers apply the revenue recognition principle by recognizing sales revenues when the performance obligation is satisfied.

Name: Merchandisers apply the revenue recognition principle by recognizing sales revenues when the performance obligation is satisfied.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Merchandisers recognize sales revenues when they have fulfilled their performance obligation, which means they have transferred control of the goods to the customer. This is in line with the revenue recognition principle.

Merchandisers Apply the Revenue Recognition Principle by Recognizing Sales Revenues