A revenue should be recorded when:
A)it is earned.
B)payment is received.
C)the invoice is sent to the customer.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Revenue should only be recorded when it is earned, which means when goods or services have been delivered or performed and there is an expectation of receiving payment. Sending an invoice or receiving payment may occur at different times than when the revenue is actually earned, so they are not necessarily the correct triggers for recording revenue.

A Revenue Should Be Recorded When