Revenue is earned when the business has ________.
A)entered into an agreement with the customer about the goods or services to be delivered
B)prepared a journal entry to record revenue
C)received cash from the customer before goods or services are delivered
D)delivered a good or service to the customer

Question

Quizplus · Accepted Answer

Revenue is earned when the business has delivered a good or service to the customer. Options A, B, and C may be necessary steps for recognizing revenue, but revenue is not actually earned until delivery has taken place.

Revenue Is Earned When the Business Has ________