At what point would you expect revenue from sales of software by a computer store to be recognised?
A) During production
B) On completion of production
C) At point of sale or delivery
D) When cash is received

Question

Quizplus · Accepted Answer

Revenue from sales of software should be recognized at the point of sale or delivery, when the transaction is complete and the ownership and risks of the product are transferred to the customer. This is consistent with the revenue recognition principle of matching revenue to the period in which it is earned.

At What Point Would You Expect Revenue from Sales of Software