Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 13 - No. 7)
Which of the following is the key point about recognizing the amount from sales commission?
Record the revenue after the cash payment is made.
The revenue should be recognized at the end of the year.
Record the sales revenue only once the product is sold.
The revenue should be recognized when the service has been provided.
Explanation
Revenue is recognized when the service has been provided, no matter if cash is paid or not.
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