Nonrefundable fees from customers are recognized as revenue when received.

Name: Nonrefundable fees from customers are recognized as revenue when received.
Brand: Quizplus
Rating: 4.7 (33 reviews)

Question

Quizplus · Accepted Answer

Nonrefundable fees from customers are recognized as revenue when the company has performed the promised service or transferred the goods to the customer, not merely when the fees are received. Revenue recognition is based on the satisfaction of performance obligations, not the timing of payments.

Nonrefundable Fees from Customers Are Recognized as Revenue When Received