Answered: Explain when it is appropriate to…

Business

Accounting

Explain when it is appropriate to recognize revenue at a single point in time.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2DQ: Explain when revenue may be recognized and give an example.

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Question

Explain when it is appropriate to recognize revenue at a single point in time.

Expert Solution

Step 1

Revenue refers to the amount of the earning which an organization earns for performing the services. There are various situations under which revenue is recognized at one point of time or over a period of time.

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