To be recognized, revenues must also be realized or realizable and:
A)foreseeable.
B)collected.
C)earned.
D)shipped.

Question

Quizplus · Accepted Answer

To be recognized, revenues must be earned, meaning that the goods or services have been provided and the customer has incurred the obligation to pay for them. Revenue recognition also requires that the revenue is realized or realizable, meaning that it is probable that the company will collect the amount owed. The other options, such as foreseeability or shipment, do not directly relate to revenue recognition.

To Be Recognized, Revenues Must Also Be Realized or Realizable