Recognition of revenue when cash is collected is appropriate only when it is impossible to establish the revenue figure at the time of sale because of the uncertainty of collection.

Question

Quizplus · Accepted Answer

Revenue recognition upon cash collection is appropriate when there is uncertainty in collection, as it aligns with the cash basis of accounting, which is used when the revenue amount cannot be reliably measured at the time of sale.

Recognition of Revenue When Cash Is Collected Is Appropriate Only