PRC-1 · Chapter 10 · Question 43 of 100
Under the accrual basis of accounting, revenue is recognized when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The goods or services are delivered/provided to the customer.
Explanation
Accrual accounting requires revenue to be recognized when it is earned (e.g., when goods are delivered and risks transfer), regardless of when the cash is actually received.
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