Module 4 Test: Revenue Recognition
Module 4 • 10 Questions
Question 1 of 10
0 of 10 answered
A seller receives a purchase order in March, collects an advance in April, delivers the goods in May and is paid in July. At which stage may revenue be recognised, and on what test?
A
In May, because the performance obligation is fulfilled, the consideration is measurable and realisation is reasonably certain
B
In March, because the accrual concept recognises revenue when the order is earned
C
In July, because revenue can never be recognised before the cash is received
D
In April, because receipt of the advance makes the consideration measurable