Revenues are recorded when:
A)the company signs a contract.
B)work is begun on the job.
C)cash is received from the customer.
D)the work is completed on the job, whether or not the cash is received.

Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenues should be recorded when the work is completed, regardless of when cash is received. Therefore, the correct choice is D, which states that revenues are recorded when the work is completed on the job, whether or not the cash is received. Choices A and B are incorrect because they do not necessarily indicate that the work is completed, and choice C is incorrect because cash receipt is not the determining factor for recognizing revenue.

Revenues Are Recorded When