Question

Revenue is properly recognized: Multiple Choice Upon completion of the sale or when services have been performed. Only if the transaction creates an account receivable. When the customer makes an order. When cash from a sale is received. At the end of the accounting period.

Answer 1

Answer: Upon completion of the sale or when services have been performed

Explanation: Revenue is recorded in the books of accounts when the obligation from the seller side has been done and he receives the right to collect the charge of service as per the contract.

    In general,the obligation is considered to be satisfied when the goods or services are received by the purchaser. Then the seller gets the right to ask money and can record revenue in books as per the accrual basis of accounting.