Question

Revenue is generally recognised when :
(A) Production is completed
(B)
Order for goods is received
(6)
Goods are delivered
(D)
Cash is received​

Answer 1

The revenue recognition principle states that one should only record revenue when it has been earned, not when the related cash is collected. For example, a snow plowing service completes the plowing of a company's parking lot for its standard fee of $100.It can recognize the revenue immediately upon completion of the plowing, even if it does not expect payment from the customer for several weeks.