Consider the following three scenarios:
I.ABC Lawncare performed lawn maintenance services for Drake Inc.on June 1^st,and received payment of $500 for those services.
II.On June 1st,Melly Corp received payment for 100 pounds of raw material to be delivered to Drake Inc.in 6 months
III.Lodo,LLC collected cash on June 1st for services rendered on May 1st.
Given these scenarios,revenue can not be recognized on June 1^st for

Question

Quizplus · Accepted Answer

Explanation: In scenario II, revenue cannot be recognized on June 1st because the raw materials have not yet been delivered. In scenario III, revenue was already earned in May when the services were rendered, so it cannot be recognized again on June 1st.

Consider the Following Three Scenarios