What is the amount of revenue recognized in the income statement by a company that sells goods to customers?

Question

Quizplus · Accepted Answer

The amount of revenue recognized in the income statement by a company that sells goods to customers is the total sales, which includes both cash and credit sales, for the period as per the accrual accounting principle. It does not necessarily have to be the cash collected during the current period. Option A is incorrect because revenue recognition does not depend on cash collection. Option C is incorrect because it does not consider credit sales. Option D is incorrect because it adds the beginning amount of trade receivables, which is not a part of revenue recognition.

What Is the Amount of Revenue Recognized in the Income