In a service-type business revenue is considered recognized
A) at the end of the month.
B) at the end of the year.
C) when the service is performed.
D) when cash is received.

Question

Quizplus · Accepted Answer

Revenue in a service-type business is considered recognized when the service is performed, even if payment is not received immediately. This is in contrast to a sales-type business where revenue is recognized upon delivery of the product or goods, regardless of payment received.

In a Service-Type Business Revenue Is Considered Recognized