Revenue should be recognized when
A) cash is received
B) the service is performed
C) the customer places an order
D) the supplier charges an order

Question

Quizplus · Accepted Answer

Revenue should be recognized when the service is performed, meaning when the company has fulfilled its obligations to the customer and the customer has received the benefits of the service. Cash being received, a customer placing an order, or a supplier charging an order do not necessarily indicate that the service has been performed or that revenue should be recognized.

Revenue Should Be Recognized When