According to Coombs and Martin when is revenue most likely to be recognised in the earning cycle?
A)Delivery of goods to customers
B)Receipt of orders after completing production
C)Receipt of cash
D)Completion of production

Question

Quizplus · Accepted Answer

Revenue is most likely to be recognized in the earning cycle when goods are delivered to customers. This is because the delivery marks the completion of the earnings process, which allows revenue to be recognized. Receipt of orders, completion of production, and receipt of cash do not necessarily indicate completion of the earnings process and therefore may not correspond with revenue recognition.

According to Coombs and Martin When Is Revenue Most Likely