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 the above.

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 means that the income has been earned by the company and is now recognized as revenue on the income statement. The other options listed may be factors that affect revenue recognition, but they are not the primary criteria for recognizing revenue under GAAP.

According to Generally Accepted Accounting Principles (GAAP), Revenue Is Recognized