A wholesale bakery would normally recognize revenue when
A) the product is available for sale to a customer.
B) goods are delivered to the customer.
C) cash is received from the customer.
D) management chooses to do so.

Question

Quizplus · Accepted Answer

Revenue is typically recognized when goods are delivered to the customer, as this is the point at which the performance obligation is satisfied under most revenue recognition principles, including the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

A Wholesale Bakery Would Normally Recognize Revenue When