In general, revenue is recognized when:
A)goods are shipped.
B)an entity satisfies a performance obligation.
C)it is recorded in the sales journal.
D)it is received in cash.

Question

Quizplus · Accepted Answer

Revenue is recognized when an entity satisfies a performance obligation, meaning the customer has received and accepted the goods or services. This may or may not coincide with shipping or receiving cash. Recording in the sales journal is simply an accounting process and does not necessarily signify revenue recognition.

In General, Revenue Is Recognized When