A dress shop makes a dress that sells for $200 and delivers it to the customer on June 30.The customer is sent a statement on July 7 and a cheque is received by the dress shop on July 11.When should the $200 be recognized as revenue?

A) July 7
B) July 11
C) June 30
D) July 1

Question

Elisa Mazzocchi · Accepted Answer

Final Answer : C, Explanation :  According to the revenue recognition principle in accounting, revenue should be recognized when it is earned, regardless of when payment is received. In this case, the dress was delivered (and thus, the revenue was earned) on June 30, so the revenue should be recognized on that date.

A dress shop makes a dress that sells for $200 and delivers it to the customer on June 30.The customer is sent a statement on July 7 and a cheque is received by the dress shop on July 11.When should the $200 be recognized as revenue?

A) July 7
B) July 11
C) June 30
D) July 1

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Learning Objectives

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A dress shop makes a dress that sells for $200 and delivers it to the customer on June 30.The customer is sent a statement on July 7 and a cheque is received by the dress shop on July 11.When should the $200 be recognized as revenue?A) July 7B) July 11C) June 30D) July 1

Definitions

Learning Objectives

Learning Objectives

Related questions

A dress shop makes a dress that sells for $200 and delivers it to the customer on June 30.The customer is sent a statement on July 7 and a cheque is received by the dress shop on July 11.When should the $200 be recognized as revenue?

A) July 7
B) July 11
C) June 30
D) July 1