Sales revenues are usually considered earned when
A) cash is received from credit sales.
B) an order is received.
C) goods have been transferred from the seller to the buyer.
D) adjusting entries are made.

Question

Quizplus · Accepted Answer

Sales revenue is earned when the goods have been delivered or transferred from the seller to the buyer. It is not dependent on the receipt of cash or the placement of an order. Adjusting entries are made at the end of an accounting period to ensure accurate financial reporting, but they do not affect the timing of when sales revenue is considered earned.

Sales Revenues Are Usually Considered Earned When