To be recorded,revenue must be ________.
A)earned
B)earned and collected
C)earned and realized
D)earned and realized or realizable

Question

Quizplus · Accepted Answer

Revenue must be earned, meaning the goods or services have been provided, and realized or realizable, meaning the payment is expected or has been received. Choice A only includes earned, which is not enough to be recorded as revenue. Choice B includes collected, which is not necessary for revenue to be recorded. Choice C only includes realized, which does not account for revenue that is still expected. Therefore, the best choice is D, which encompasses both realized and realizable.

To Be Recorded,revenue Must Be ________