When do most companies usually recognize revenue as earned and record the revenue?
A) When the customer's order is received
B) When title and risks of ownership pass to the buyer
C) When the order is delivered
D) When payment is received

Question

Quizplus · Accepted Answer

Revenue is typically recognized as earned and recorded when title and risks of ownership pass to the buyer, according to the principle of revenue recognition. This point marks the transfer of control, making it the appropriate time for revenue recognition.

When Do Most Companies Usually Recognize Revenue as Earned and Record