Which is not an application of revenue recognition?
A) Recording revenue as an adjusting entry on the last day of the accounting period.
B) Accepting cash from an established customer for services to be performed over the next three months.
C) Billing customers on June 30 for services completed during June.
D) Receiving cash for services performed.

Question

Quizplus · Accepted Answer

Revenue recognition involves recognizing revenue when it is earned, not when cash is received. Accepting cash for future services does not recognize revenue at that point, as the services have not yet been performed.

Which Is Not an Application of Revenue Recognition