The revenue recognition criteria states that revenue of a business is recognized
A) when cash is received.
B) when it is earned.
C) at the end of the year.
D) in the period that the expenses to earn that revenue are incurred.

Question

Quizplus · Accepted Answer

Revenue is recognized when it is earned, regardless of when cash is received, according to the accrual basis of accounting.

The Revenue Recognition Criteria States That Revenue of a Business