Most companies recognize sales when
A)a customer order is received.
B)the merchandise is shipped.
C)the merchandise is received by the customer.
D)cash is received on account.

Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenue should be recognized when goods are shipped or services are rendered, regardless of when payment is received. Therefore, the correct answer is when the merchandise is shipped.

Most Companies Recognize Sales When