The earning of revenue by a company is recognized for accounting purposes when the transaction is recorded.
Question:
Required (ignore income taxes)
1. Explain and justify why revenue is often recognized as earned at the time of sale.
2. Explain in what situations it would be appropriate to recognize revenue as the productive activity takes place.
3. Explain at what times it may be appropriate to recognize revenue other than those included in items (1) and (2).
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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