Revenue Should Be Recognized When Quizlet

Revenue from disposing of assets other than products is recognized at the date of sale.

Revenue should be recognized when quizlet. Revenue should be recognized in the balance sheet. You seem to have a confusion or lack of knowledge between accrual accounting and cash accouting. The revenue recognition principle states that. Which of the following accounts is an stockholders equity account.

Look up the definition of both that should answer your question. The customer places an order d. Cash is received b. On the date the performance obligation is satisfied.

Revenue should be recognized when. When the amount of sales can be determined. 2 the related revenue price and cost can be identified. None of these answer choices are correct.

On the date payment is received by the franchisor. C when services are performed. A sale is realized when goods or services are exchanged for cash or claims to cash. 1 the economic value of the product can be identified.

B in the period that income taxes are paid. Generally revenue from sales should be recognized at a point when a. The entire amount receivable has been collected from the customer and there remains no further warranty liability. On the date the contract was signed.

Revenue for ongoing sales based royalty payments should be recognized a. The timing of revenue recognition when the revenue can appear on the company s income statement is based on the following two factors. Revenue should be recognized when a. Revenue is a component of common stock.

The service is performed c. A business generates revenue from its operating and financial activities. Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used. Is the sale realized or realizable.

The revenue recognition principle dictates that revenue should be recognized in the accounting records a at the end of the month. According to the realization concept revenues should only be recognized when. Management decides it is appropriate to do so. Revenue from services rendered is recognized when cash is received or when services have been performed.

The product is available for sale to the ultimate consumer.