Solution-Why revenue is often recognized as earned at time

Why revenue is often recognized as earned at time of sale

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Question - The earning of revenue by a company is recognized for accounting purposes when the transaction is recorded. In some situations, revenue is recognized approximately as it is earned in the economic sense; in others, accountants have developed guidelines for recognizing revenue by other criteria, for example, the point of sale.

Explain and justify why revenue is often recognized as earned at the time of sale.

Reference no: EM131794076

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Why revenue is often recognized as earned at time of sale

Reference no: EM131794076

Reference no: EM131794076

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