According to U.S.GAAP,revenue is recognized when it is
A)realized or realizable only.
B)earned only.
C)received in a timely fashion.
D)earned and realized or realizable.
E)received in cash.

Question

Quizplus · Accepted Answer

According to U.S. GAAP, revenue should be recognized when it is earned and realized, or realizable. This means that the seller has completed the performance obligations and can reasonably expect to collect the amount owed. Simply receiving payment in a timely fashion or in cash does not necessarily mean that revenue has been earned or recognized. Therefore, options A, B, C, and E are not the best choices.

According to U.S.GAAP,revenue Is Recognized When It Is