In general, revenue recognition occurs
A)when cash is received.
B)when it is earned.
C)when expenses are incurred.
D)in the period that income taxes are paid.

Question

Quizplus · Accepted Answer

Revenue recognition typically occurs when it is earned, regardless of when cash is received. This is in accordance with the accrual basis of accounting, which matches revenues to the time period in which they are earned and the services or goods are delivered, rather than when payment is received.

In General, Revenue Recognition Occurs