Revenue recognition means that:
A) revenue is not recorded until payment by the customer.
B) the recording of expenses is delayed until the related revenue has been earned.
C) revenue is recorded when earned.
D) revenue is recorded when a deposit is received.

Question

Quizplus · Accepted Answer

Revenue recognition is the accounting principle that revenue should be recorded when it is earned, regardless of when it is actually received. This means that revenue should be recognized when a company has substantially completed the delivery of goods or services to the customer and there is reasonable certainty of payment.

Revenue Recognition Means That