Revenues are normally considered to have been earned when
A) All possibility of return has expired.
B) The company has substantially accomplished what it must to be entitled to the benefits.
C) The cash is collected.
D) Goods have been shipped.

Question

Quizplus · Accepted Answer

Revenues are considered earned when the company has substantially achieved what it needs to be entitled to the benefits, such as the delivery of goods or completion of services. The collection of cash or expiration of return policy is not the determining factor for revenue recognition.

Revenues Are Normally Considered to Have Been Earned When