What Does the Phrase, "Revenue Is Recognized When Earned" Mean

question 131

Multiple Choice

What does the phrase, "Revenue is recognized when earned" mean?

• A)Revenue is recorded in the accounting records when the goods are received from a supplier, and reported on the income statement when sold to the customer.
• B)Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer.
• C)Revenue is recorded in the accounting records when the goods are sold to a customer, and reported on the income statement when the cash payment is received from the customer.
• D)Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.