The Rainbow House Painting Company has been contracted to strip,repair,prime and paint a house for $3,600 to be paid in installments as phases of the work are completed.Rainbow should recognize the revenue when

Question

Quizplus · Accepted Answer

Revenue should be recognized when the work is complete and the house has been painted. This is because the entire project represents a single, completed transaction and it is only at the end of the project that Rainbow can determine the total amount of revenue to be recognized. Recognizing revenue at any other point would not accurately reflect the true financial performance of the company.

The Rainbow House Painting Company Has Been Contracted to Strip,repair,prime