Revenues are reported when
A) a contract is signed
B) cash is received from the customer
C) work is begun on the job
D) work is completed on the job

Question

Quizplus · Accepted Answer

Revenues should be recognized when the work is completed, and the result of the work is transferred to the customer, as stated in the revenue recognition principle. This means that until the work is done, there is no guarantee that the payment will be received from the customer, and the revenue cannot be recognized until that point. Therefore, options A, B, and C are incorrect.

Revenues Are Reported When