When should a company recognize revenue under GAAP?
A)When delivery has occurred or services have been provided (rendered).
B)When the price is measurable.
C)When the promised performance has been satisfied.
D)All of the choices are necessary to recognize revenue.

Question

Quizplus · Accepted Answer

All of the choices listed are necessary to recognize revenue under GAAP. Delivery or service provision must have occurred, the price must be measurable, and the promised performance must have been satisfied in order for revenue to be recognized.

When Should a Company Recognize Revenue Under GAAP