question archive Revenue should not be recognized until: A) Work has been performed and customer has been billed
Revenue should not be recognized until: A) Work has been performed and customer has been billed
Subject:BusinessPrice:2.87 Bought7
Revenue should not be recognized until:
A) Work has been performed and customer has been billed.
B) The seller has transferred goods or services to a customer.
C) Contracts have been signed and payment has been received.
D) Collection has been made and warranties have expired.
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Answer:
(B) The seller has transferred goods or services to a customer.
The revenue will be recognized when the seller has transferred goods or services to a customer. As the seller transferred the goods or service is performed and also the collection is certain then the revenue is recognized. In the above case the revenue is said to be recognized when the seller has transferred goods or services to a customer.
