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.

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Definitions:

Parental Discipline

The strategies and methods used by parents to teach and guide their children towards appropriate behavior and away from misbehavior.

Self-discipline

The ability to control one's feelings, behaviors, and desires to achieve a long-term goal.

Induction

The process of initiating or causing something to happen, often used in contexts like labor in childbirth or reasoning in logic.

Unacceptable Behavior

Actions or conduct deemed inappropriate or offensive according to societal standards, norms, or expectations.