Revenue is always recognized when which of the following occurs?
A) expenses are paid.
B) cash is collected.
C) it is earned.
D) the end of the period arrives.

Question

Quizplus · Accepted Answer

Revenue recognition occurs when it is earned, regardless of when cash is collected, according to the revenue recognition principle in accounting. This principle dictates that revenue is recognized when the underlying service or sale is completed, not necessarily when payment is received.

Revenue Is Always Recognized When Which of the Following Occurs