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

While revenue is total money gained (not including costs) profit would be the revenue - costs.

In this case, A. cash is received makes the most sense.

Answer 2

Answer: Option 'B' and 'C' are correct.

Explanation:

Revenue is traditionally recognized in the accounting records when services are rendered and it's incurred.

Like when we incurred a commission to complete their given targets.

So, Services are already and it has been incurred so, Revenue is recognized in the accounting records .

Hence, Option 'B' and 'C' are correct.