In general,revenue is recognized when
A) goods are shipped.
B) it is earned and realized.
C) it is recorded in the sales journal.
D) it is received in cash.

Question

Quizplus · Accepted Answer

Revenue is recognized when it is earned and realized. This means that the goods or services have been delivered or performed, and there is an expectation of payment. The receipt of payment in cash is not necessary for revenue recognition. Nor is recording in the sales journal or shipping the goods necessarily sufficient for revenue recognition. Revenue recognition is based on the concept of accrual accounting, which aims to match revenues with the expenses that generated them, regardless of the timing of cash flows.

In General,revenue Is Recognized When