alleryStart learning →When are revenues recorded under revenue recognition?
AWhen the order is placed
BWhen the invoice is paid
CIn the period they are earned
DWhen cash is received
Answer & Solution
Correct answer: C. In the period they are earned
Revenue belongs to the period in which it is earned, whether or not cash has changed hands.
Keep practising Framework for preparation and presentation of financial statements
Browse all Framework for preparation and presentation of financial statements questions for CA Inter, or explore more Accounting topics.
Related questions
Before Ind AS, which accounting framework did Indian companies follow?Ind AS 107 deals with disclosures on which subject?Which standards for computing taxable income were notified in February 2015?Once a company follows Ind AS, can it revert to the old method?Mandatory Ind AS from April 2016 applied to net worth of at least?Ind AS are named and numbered in line with which standards?In which year was the Accounting Standards Board constituted?Cost 1,000; sale 1,150; replacement cost 1,100. Profit on replacement basis?