When services are provided,it is customary to recognise revenue when the:
A) supplier agrees to provide the service
B) service is provided
C) service is paid for
D) warranty period expires.

Question

Quizplus · Accepted Answer

Revenue for services should be recognised when the service is provided to the customer, regardless of when payment is received or when the warranty period expires. The agreement to provide the service is not sufficient to recognise revenue, as the service must actually be performed.

When Services Are Provided,it Is Customary to Recognise Revenue When