Tyler Tours provides transportation services and requires clients to book trips at least one month in advance. Tyler Tours bills its customers on the first day of the month and requires payments to be made on the last day of the month. When should Tyler Tours recognize revenue from its services?
A) On the first day of the month of billing
B) On the last day of the month of billing
C) When customer places order
D) When customers travel
E) When customers pay for their trips

Question

Quizplus · Accepted Answer

Revenue is recognized when the service is performed or the goods are delivered, which in this case is when the customers actually travel.

Tyler Tours Provides Transportation Services and Requires Clients to Book