Revenue Is Recognized At The Time Of Sale Under The
Revenue recognition at the time of sale is a primary component of accrual accounting.
Revenue is recognized at the time of sale under the. Under special circumstances dates other than the point of sale are used for timing of revenue recognition. Answer to revenue is usually recognized at the point of sale. In theory there is a wide range of potential points at which revenue can be recognized. Revenue from selling an asset other than inventory is recognized at the point of sale when it takes place.
Revenue versus cash timing. Revenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized. Revenue from permission to use company s assets e g.