Income is considered to have been earned when:
A) it is probable that any income owing will be received and any outstanding expenses, such as warranty claims, can be identified.
B) the activities necessary to generate the income are substantially complete.
C) the amount of income generated can be reliably measured.
D) all of the above.

Question

Quizplus · Accepted Answer

All of the options must be met for income to be considered earned. It must be probable that any income owing will be received, the activities necessary to generate the income must be substantially complete and the amount of income generated can be reliably measured.

Income Is Considered to Have Been Earned When