What Does the Phrase, "Revenue Is Recognized at the Point

question 154

Multiple Choice

What does the phrase, "Revenue is recognized at the point of sale" mean?

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

---

Definitions:

General Journal

A comprehensive record of all financial transactions of a company, listed in chronological order.

Correcting Entry

A correcting entry in accounting is a journal entry made to amend a previously recorded error in the financial statements.

Special Journal

A special journal is an accounting journal dedicated to recording transactions of a similar type, improving efficiency and organization.

General Journal

A comprehensive record where all financial transactions of a business are initially recorded.