Question

In general, revenue is recognized when

a. Goods are shipped.
b. It is earned and realized.
c. It is recorded in the sales journal.
d. It is received in cash.

Answer 1

Revenue is recognized when it is earned and realized.

Step-by-step explanation:

Revenue is recognized when it is earned and realized. This means that revenue is recognized when the goods or services have been provided to the customer and the transaction is complete. It does not depend on when the goods are shipped, recorded in the sales journal, or received in cash.