alleryStart learning →A firm cannot estimate returns and has very high return rates. It recognises revenue when:
AGoods are dispatched
BGoods are invoiced
CCash is collected
DThe return right expires
Answer & Solution
Correct answer: D. The return right expires
Without a reliable estimate of returns, revenue waits until the customer's right of return ends.
Keep practising Revenue Recognition (AS 9)
Browse all Revenue Recognition (AS 9) questions for CA Inter, or explore more Accounting topics.
Related questions
Sales of Rs 1,00,000 carry a 2% volume rebate given. Revenue is what?A consignor sends 100 units at Rs 500; the consignee sold 60. Consignor's revenue?Membership fee giving only membership, with a separate annual subscription, is booked whenFees of Rs 36,000 cover a 9-month course. Revenue for 3 months is what?Fees for a season ticket to many events are allocated how?Trade discounts received are not revenue because they are what?Trade discounts and volume rebates given are treated how?Interest on an instalment sale is recognised in proportion to what?