ccording to Generally Accepted Accounting Principles (GAAP), revenue is ncome when: a contract is signed to perform a service or deliver a good. managers decide to recognize it. payment is requested. income taxes are paid on the revenue earned. the transaction is complete and the goods or services are delivered.

ccording to Generally Accepted Accounting Principles (GAAP), revenue is ncome when: a contract is signed to perform a service or deliver a good. managers decide to recognize it. payment is requested. income taxes are paid on the revenue earned. the transaction is complete and the goods or services are delivered.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

According to Generally Accepted Accounting Principles (GAAP), revenue is recognized as
income when:
a contract is signed to perform a service or deliver a good.
managers decide to recognize it.
payment is requested.
income taxes are paid on the revenue earned.
the transaction is complete and the goods or services are delivered.

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