Question

As per Revenue Recognition Concept, revenue is deemed to be realised:
1 point
When goods are delivered to the purchaser
When purchase order is received from the purchaser
When the title of the goods has been transferred to the purchaser
When cash is received from the purchaser

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Answer 1

Answer:

purchase order (PO) is a commercial document and first official offer issued by a buyer to a seller indicating types, quantities, and agreed prices for products or services. It is used to control the purchasing of products and services from external suppliers.[1] Purchase orders can be an essential part of enterprise resource planning system orders

Indent is a purchase order often placed through an agent (indent agent) under specified conditions of sale.[2]

The issue of a purchase order does not itself form a contract. If no prior contract exists, then it is the acceptance of the order by the seller that forms a contract between the buyer and seller.