Revenues should be recorded when:
A) it is earned.
B) payment is received.
C) the invoice is sent to the customer.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Revenues are recognized when they are earned, regardless of when payment is received. This is in accordance with the revenue recognition principle, which states that revenue is recognized when the earning process is complete.

Revenues Should Be Recorded When