Under the revenue recognition principle, revenue is generally recognized when the earning process is virtually complete and
A) an exchange transaction has occurred.
B) the merchandise has been ordered.
C) all expenses have been identified.
D) the accounting process is virtually complete.

Question

Quizplus · Accepted Answer

Revenue is recognized when the earning process is virtually complete and an exchange transaction has occurred, indicating that goods or services have been provided to the customer in exchange for payment or a promise to pay.

Under the Revenue Recognition Principle, Revenue Is Generally Recognized When