Sales revenue is recognized in the period in which:
A)Merchandise is delivered to the customer.
B)The customer orders the merchandise.
C)Cash payment is received by the seller.
D)Purchases are made to replace the merchandise sold.

Question

Quizplus · Accepted Answer

Sales revenue is recognized when the merchandise is delivered to the customer, regardless of when the payment is received. This is in accordance with the revenue recognition principle. The other options listed are not relevant to the recognition of sales revenue.

Sales Revenue Is Recognized in the Period in Which