In accordance with the revenue recognition principle, sales revenues are recorded when:

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The revenue recognition principle states that sales revenues should be recognized when they are earned. This typically occurs when the goods are transferred from the seller to the buyer, meaning that ownership and title of the goods have passed to the buyer. Recognizing revenues when cash is received or based on the accountant's determination do not follow the revenue recognition principle. While an order from a customer may indicate future revenue, it does not mean that revenue has been earned yet, so it should not be recognized until the goods are actually delivered.

In Accordance with the Revenue Recognition Principle, Sales Revenues Are