When goods are sold on credit,revenue usually should be recognized at the date of which of the following?

Question

Quizplus · Accepted Answer

Revenue should be recognized when the title of the goods transfers from the seller to the buyer. This is because at this point, the risks and rewards of owning the goods are transferred, and the seller has fulfilled its obligation to deliver the goods to the buyer. Receipt of the sales order, receipt of the goods by the buyer, or manufacture of the goods does not necessarily indicate when the title has transferred.

When Goods Are Sold on Credit,revenue Usually Should Be Recognized