To be recorded in a period's accounting record, revenue must be _____.
A)earned and collected
B)earned and collectible
C)rendered and collected
D)earned and rendered

Question

Quizplus · Accepted Answer

Revenue must be both earned and collectible in order to be recorded in the accounting record. “Earned” means that the goods or services have been provided or delivered, and the customer has become obligated to pay. “Collectible” means that the amount can be reasonably expected to be collected from the customer.

To Be Recorded in a Period's Accounting Record, Revenue Must