Question

Revenue is traditionally recognized in the accounting records when A. Cash is received. B. Services are rendered. C. It's incurred. D. None of the above balance.

Answer 1

The correct answer is choice b.

Revenue is normally recognized when the services are rendered. At this point in the accounting cycle you would make an entry to record the sale. It would be a credit to Sales/Revenue and a debit to either cash or accounts receivable.