Using the Accrual Basis of Accounting, When Is Revenue from the Sale

question 16

Multiple Choice

Using the accrual basis of accounting, when is revenue from the sale of merchandise normally recognized?

• A) On the date the sale is made.
• B) On the date the customer pays for the merchandise.
• C) Either on the date on which the sale occurs, or the date on which the customer pays.
• D) When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit.

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Definitions:

United Kingdom

A sovereign country located off the northwestern coast of mainland Europe, comprising England, Scotland, Wales, and Northern Ireland.

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The proportion of the workforce that is unemployed and actively looking for work.