Revenue may be recognized:
A)Before goods are delivered
B)After goods are delivered
C)When goods are delivered
D)Either before goods are delivered, after goods are delivered, or when goods are delivereD.The revenue recognition principle specifies that a company recognizes revenue when goods or services are transferred to customers.

Question

Quizplus · Accepted Answer

The revenue recognition principle specifies that revenue should be recognized when goods or services are transferred, which means when they are delivered to the customer. This rules out options A and B, which suggest recognizing revenue either before or after delivery. Option D is technically correct in stating that revenue can be recognized before or after delivery, but the best answer is option C as it directly aligns with the revenue recognition principle.

Revenue May Be Recognized