Revenue is recognized when service is rendered and collection is probable.

Name: Revenue is recognized when service is rendered and collection is probable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) dictate that revenue should be recognized when it is earned, which occurs when services are rendered or goods are delivered, and collection is probable. This helps ensure that companies accurately reflect their financial performance and do not overstate their revenue.

Revenue Is Recognized When Service Is Rendered and Collection Is