Sales revenue is usually considered earned when ________.
A)cash is received from credit sales
B)the customer places an order for goods to be shipped
C)goods have been shipped from the seller to the buyer
D)the adjustments are made at the end of the accounting period

Question

Quizplus · Accepted Answer

Sales revenue is considered earned once goods have been shipped from the seller to the buyer. This is because revenue is recognized when the seller has satisfied their performance obligation, which is typically when goods have been transferred. Cash receipt is only one factor in determining revenue recognition, and orders being placed or adjustments at the end of the accounting period do not necessarily indicate that revenue has been earned.

Sales Revenue Is Usually Considered Earned When ________