Question

revenue is generally recognised being earned at the point of time when

Answer 1

Answer:

when it occurs, not at the time it received

Explanation:

Hope it helps you

Answer 2

ANSWER :

Revenue is generally recognised being earned at the point of time when the title of the goods passes from the buyer to the seller, i.e., at the point of sale, which is usually the date of delivery.

• ➺ The revenue is to be recognized only when it is earned.

• ➺ Revenue is recognized at the point of sale of a product, which is generally the delivery date.

• ➺ In case of services, revenue is recognized when it is performed to the satisfaction of the customer and the later becomes liable to pay for this.

• ➺ Accounting Standard 9 deals with the basis for recognition of revenue arising from ordinary activities of an enterprise in the profit and loss account.

• ➺ The revenue recognition principle helps in ascertaining the amount and time of recognizing the revenues from the ordinary business activities.

• ➺ The revenue recognition principle tells us the procedure of determining the income and expense for incorporation in profit and loss account.

• ➺ The Revenue Recognition Principle is also known as Revenue Realisation Principle.