No revenue whatsoever from the performance of a service can be recognized until all of the service has been performed.

Question

Quizplus · Accepted Answer

This statement is not entirely true. Revenue can be recognized during the performance of a service if it meets certain criteria, such as being able to estimate the percentage of completion, having assurance of receiving payment, and having no significant uncertainties related to the service being performed. This is known as the percentage of completion method of revenue recognition. However, if these criteria are not met, revenue recognition must be deferred until the service has been fully performed.

No Revenue Whatsoever from the Performance of a Service Can