Under accrual accounting when is revenue recognized?

Question

Quizplus · Accepted Answer

Under accrual accounting, revenue is recognized when it is earned, which is typically when goods or services are delivered or completed, regardless of when payment is actually received. Similarly, expenses are recognized when they are incurred, which is usually when goods or services are received, regardless of when payment is made. This contrasts with cash basis accounting, where revenue and expenses are recognized only when cash is received or paid, respectively.

Under Accrual Accounting When Is Revenue Recognized