When does the all-events test under the accrual method require the recognition of income from the sale of goods?
A) When the title of the goods passes to the buyer.
B) When the business receives payment.
C) When payment is due from the buyer.
D) The earliest of the above three dates.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The all-events test under the accrual method requires the recognition of income from the sale of goods at the earliest of the following dates: when the title of the goods passes to the buyer, when the business receives payment, or when payment is due from the buyer. Therefore, the correct answer is D, which includes all three options.

When Does the All-Events Test Under the Accrual Method Require