Select the correct revenue recognition principle for each of the following.
-Merchandise
A)Recognize revenue over the passage of time.
B)Recognize revenue when the customer takes possession of the product.
C)Recognize revenue when cash is collected.
D)Recognize revenue when service is performed.

Question

Quizplus · Accepted Answer

Revenue for merchandise is typically recognized when the customer takes possession of the product, as this is often when the risks and rewards of ownership transfer to the customer.

Select the Correct Revenue Recognition Principle for Each of the Following