Select the correct revenue recognition principle for each of the following.
-Rent
A)Recognize revenue over the passage of time.
B)Recognize revenue when the customer takes possession of the product.
C)Recognize revenue when cash is collected.
D)Recognize revenue when service is performed.

Question

Quizplus · Accepted Answer

Rent is recognized over the passage of time, typically on a straight-line basis over the term of the lease agreement.

Select the Correct Revenue Recognition Principle for Each of the Following