According to generally accepted accounting principles,a sale is recognized when

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According to generally accepted accounting principles, a sale is recognized when inventory becomes the legal property of the customer. This is based on the principle of revenue recognition, which states that revenue should be recognized when it is earned, regardless of when payment is received. In this case, ownership of the inventory is transferred to the customer, indicating that the sale has been earned. Cash receipts and inventory removal are important events in the sales process, but they do not necessarily indicate when revenue should be recognized. Sales orders are also important, but approval by various departments does not necessarily indicate that revenue has been earned.

According to Generally Accepted Accounting Principles,a Sale Is Recognized When