Generally, revenue from sales should be recognized at a point when
A) management decides it is appropriate to do so.
B) the product is available for sale to the ultimate consumer.
C) the entire amount receivable has been collected from the customer and there remains no further warranty liability.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

Revenue recognition does not solely depend on management's decision, product availability, or complete collection of receivables and end of warranty liability. It typically follows specific accounting principles that recognize revenue when it is earned and realizable, often at the point of sale or delivery of goods or services, according to standards like IFRS or GAAP.

Generally, Revenue from Sales Should Be Recognized at a Point