According to generally accepted accounting principles (GAAP),revenue is recognized as income when:
A)the transaction is complete and the goods or services are delivered.
B)a contract is signed to perform a service or deliver a good.
C)payment is requested.
D)income taxes are paid.
E)All of the above.

Question

Quizplus · Accepted Answer

According to GAAP, revenue should be recognized as income when the transaction is complete and the goods or services are delivered. This is also known as the "earnings approach," which requires that revenue be recorded when the earnings process is complete, and the company has transferred control of the goods or services to the customer. The other options, such as signing a contract, requesting payment, or paying income taxes, are not relevant to the recognition of revenue under GAAP.

According to Generally Accepted Accounting Principles (GAAP),revenue Is Recognized as Income