For sellers of goods, the revenue recognition principle generally requires that revenues be recorded when the following conditions are met:
A) The item is manufactured
B) The sales order is received
C) When title and risks of ownership pass to the buyer.
D) When the goods are received by the buy

Question

Quizplus · Accepted Answer

The revenue recognition principle requires that revenue is recognized when the performance obligation is satisfied, which, for sellers of goods, typically occurs when title and risks of ownership pass to the buyer. This point signifies that the seller has fulfilled their part of the transaction, making it the appropriate time to recognize revenue.

For Sellers of Goods, the Revenue Recognition Principle Generally Requires