Somerdale Corp.received an order from a customer on November 10.It manufactured the ordered items on November 15,shipped the goods on November 17,and received payment on December 2.Under the accrual basis of accounting,Somerdale should record revenue on:
A)November 10.
B)November 15.
C)November 17.
D)December 2.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting,revenues are recorded when the performance obligation is satisfied.Typically,that occurs when goods are shipped to a customer,which in this case it would be November 17.