Under the accrual method, the timing of revenue recognition is influenced by
A)where the purchaser gets funds to pay the seller.
B)whether the buyer pays with cash or a promise.
C)when the services or product are provided.
D)when the seller has received a form of payment in settlement of a purchaser's promise.
E)the nature of the services or product provided.

Question

Quizplus · Accepted Answer

Under the accrual method, revenue is recognized in the period when the services or product are provided, regardless of when payment is received or when the funds are received from the purchaser. The key factor in determining revenue recognition is the completion of the earnings process, which occurs when the seller has provided the goods or services to the buyer.

Under the Accrual Method, the Timing of Revenue Recognition Is