Which of the following transactions should not result in revenue recognition in March?
A) Services for a customer were carried out on credit in March,to be collected in April.
B) Services were carried out for a customer for cash in March.
C) Payment was received from a customer in March,for services provided in February.
D) Goods were sold to a customer on credit in March,with cash to be collected in April.

Question

Quizplus · Accepted Answer

Revenue is recognized when it is earned, not when payment is received. Since the services were provided in February, the revenue should have been recognized in February, not March.

Which of the Following Transactions Should Not Result in Revenue