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Revenue Must Be Recognized When (Or As) the Company Satisfies

question 32

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Revenue must be recognized when (or as) the company satisfies the performance obligation, regardless of whether or not the transaction price has been determined.


Definitions:

Government

The system or group of people governing an organized community, often a state.

Common Law

The body of law developed from custom or judicial decisions in English and U.S. courts, not attributable to a legislature.

Judicial Decisions

Outcomes of court cases that establish precedents or legal principles, determined by judges or courts.

Civil Law System

A system of law derived from that of the Roman Empire and based on a code rather than case law; the predominant system of law in the nations of continental Europe and the nations that were once their colonies. In the United States, Louisiana is the only state that has a civil law system.

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