Revenue recognition criteria include recognized revenue when
A)cash is received.
B)goods or services are transferred to customers.
C)related expenses are recognized.
D)the revenue is recorded.

Question

Quizplus · Accepted Answer

Revenue should be recognized when goods or services are transferred to the customer. Cash receipt may not be a reliable indicator of revenue recognition. Recognition of related expenses is not a criterion for revenue recognition. Simply recording revenue does not satisfy the criteria for revenue recognition.

Revenue Recognition Criteria Include Recognized Revenue When