In which of the following circumstances is revenue NOT earned by a company?
A) In return for goods supplied,a customer paid $1000 in cash.
B) In return for goods supplied,a customer promised to pay $1000 later.
C) In return for goods supplied,a customer gave the company $1000 in equipment.
D) A customer paid $500 deposit for goods to be supplied in the next accounting period.

Question

Quizplus · Accepted Answer

Revenue is recognized when goods or services are provided, regardless of the payment form (cash, promise to pay, or non-cash items like equipment). However, a deposit for goods to be supplied in the future does not count as revenue until those goods or services are actually delivered.

In Which of the Following Circumstances Is Revenue NOT Earned