Most companies recognize sales revenue when
A) sales are invoiced.
B) payment is received from the customer.
C) goods are shipped.
D) the customer's order is received.

Question

Quizplus · Accepted Answer

Most companies recognize sales revenue when goods are shipped, as this typically marks the point at which ownership and risks associated with the goods are transferred to the buyer, aligning with the revenue recognition principle that revenue is recognized when it is earned and realizable.

Most Companies Recognize Sales Revenue When