A rationale for recognizing revenue over the life of a contract rather than at a single point in time is that:
A) Results are more conservative.
B) It provides a better measure of periodic accomplishment.
C) It is a better match with legal ownership.
D) It results in a lower income tax.

Question

Quizplus · Accepted Answer

Recognizing revenue over time better conveys the benefit to the company of satisfying performance obligations over time.

A Rationale for Recognizing Revenue Over the Life of a Contract