When is revenue from the sale of merchandise normally recognized?
A)On the date the sale is made.
B)On the date the customer pays for the merchandise.
C)Either on the date on which the sale occurs, or the date on which the customer pays.
D)When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit.

Question

Quizplus · Accepted Answer

Revenue from the sale of merchandise is normally recognized on the date the sale is made, regardless of whether payment is received at that time or not. This is known as the revenue recognition principle in accounting.

When Is Revenue from the Sale of Merchandise Normally Recognized