As a general rule, revenue is normally recognized when it is:
A) measurable and earned.
B) measurable and received.
C) realizable and earned.
D) realizable.

Question

Quizplus · Accepted Answer

Revenue is recognized when it is realizable and earned. Realizable means the amount of revenue can be reasonably collected, while earned means the goods or services have been delivered or performed. Measurable and received (B) and realizable (D) do not necessarily guarantee that revenue has been earned, while measurable and earned (A) only covers the latter condition.

As a General Rule, Revenue Is Normally Recognized When It