Air France collected cash on February 4 from the sale of a ticket to a customer on January 26.The flight took place on April 5.According to the revenue recognition principle,in which month should Air France have recognized this revenue?

Question

Quizplus · Accepted Answer

According to the revenue recognition principle, revenue should be recognized when the earning process is complete, which in this case is when the flight takes place. Therefore, Air France should recognize the revenue in April, the month of the flight.

Air France Collected Cash on February 4 from the Sale