According to generally accepted accounting principles (GAAP),revenue is recognized as income when:
A) a contract is signed to perform a service or deliver a good.
B) the transaction is complete and the goods or services are delivered.
C) payment is requested.
D) income taxes are paid.
E) All of

Question

Quizplus · Accepted Answer

According to GAAP, revenue is recognized as income when the transaction is complete and the goods or services are delivered. This is known as the "earned revenue" principle, which states that revenue should be recognized when it is earned, regardless of when payment is received. The signing of a contract or requesting payment do not necessarily indicate that revenue has been earned. Income taxes being paid also does not determine revenue recognition.

According to Generally Accepted Accounting Principles (GAAP),revenue Is Recognized as Income