Under the general rule of revenue recognition,revenue is recognized when
A) marketability and market price are assured.
B) a contractual agreement exists,and cash collection is assured.
C) the earnings process is complete,and a valid promise of payment has been received.
D) all related expenses have been incurred.

Question

Quizplus · Accepted Answer

According to the general rule of revenue recognition, revenue should be recognized when the earnings process is complete and a valid promise of payment has been received. This means that the seller has delivered the goods or services to the customer, there is no uncertainty about the collection of payment, and the revenue amount can be reliably measured. The other options (A, B, and D) may be relevant factors in some situations, but they do not represent the general rule for revenue recognition.

Under the General Rule of Revenue Recognition,revenue Is Recognized When