A revenue should be recorded when
A) it is earned.
B) payment is received.
C) the invoice is sent to the customer.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

Revenue should be recorded when it is earned, meaning when the product or service has been delivered or completed and the customer is obligated to pay for it. Payment and invoice sending are events that may happen before or after revenue has been earned, so they are not sufficient criteria for recording revenue.

A Revenue Should Be Recorded When