According to generally accepted accounting principles,revenue should be recognized at the earliest time that both (1)the "critical event" has taken place,and (2)the proceeds have been collected.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), revenue should be recognized when the critical event has taken place (or the performance obligation is satisfied) and the revenue is realizable or realized, not necessarily when the proceeds have been collected. This follows the revenue recognition principle, which may not always require payment to be received for revenue to be recognized.

According to Generally Accepted Accounting Principles,revenue Should Be Recognized at the Earliest