Question

According to the Revenue Recognition Principle, revenues are recognized A : when a company provides a service. B : when a customer pays for a service. C : when the customer acknowledges that the service was provided. D : when the company makes an obligation to provide a service.

Answer 1

Option A When a company provides a service

Step-by-step explanation:

According to accrual concept the revenue must be recognized when they are earned this means the share of consideration is delivered to the party to contract. The consideration here is provision of services here. So the option A is correct here.