Cash collection may precede revenue recognition, resulting in earned revenues.

Name: Cash collection may precede revenue recognition, resulting in earned revenues.
Brand: Quizplus
Rating: 4.9 (23 reviews)

Question

Quizplus · Accepted Answer

Revenue recognition occurs when the earnings process is complete or nearly complete, and the revenue is realizable or realized, not necessarily when cash is collected. Cash collection before revenue recognition leads to unearned revenue, not earned revenues.

Cash Collection May Precede Revenue Recognition, Resulting in Earned Revenues